ZeniMax Online Studios leaders exit in latest Xbox cuts
▼ Summary
– Joe Burba, Susan Kath, Rich Lambert, and Ala Diaz are leaving ZeniMax Online Studios as part of a leadership transition following a major layoff.
– The studio is transitioning to new leaders Josh Henderson and Nick Giacomini over the next few months.
– Microsoft laid off 379 ZeniMax workers in Maryland, with over 200 cuts at ZeniMax Online Studios, including senior roles like studio head.
– The layoffs have raised concerns about the Elder Scrolls Online’s future, but outgoing leaders expressed confidence in the game’s continued growth.
– The cuts are part of broader Microsoft reductions, including 158 jobs in Texas and potential changes at Arkane Lyon.
Major leadership upheaval is sweeping through ZeniMax Online Studios, the Maryland-based team behind The Elder Scrolls Online. Game File has confirmed that Joe Burba, a 14-year studio veteran who took the helm just last July, is leaving. He is joined by ESO executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz.
These departures are part of a broader wave of cuts. Their roles appeared on a Worker Adjustment and Retraining Notification (WARN) letter filed with the state of Maryland last week, which listed hundreds of eliminated positions from ZeniMax’s Maryland offices. Game File obtained that document today.
In an internal notice reviewed by Game File, Burba, Kath, Lambert, and Diaz informed ZOS employees of a planned leadership transition. The outgoing executives will oversee a handoff over “the next few months” to a new team composed of promoted ZOS veterans. “We will remain in place during the transition period to help ensure a smooth handoff,” they wrote.
The cuts are part of a larger Microsoft restructuring that saw 1,600 workers laid off across its global gaming operations last week. The full impact has been unfolding daily. Game File previously reported that Microsoft and ZeniMax notified Maryland officials of 379 gaming job cuts across the state. These were split between ZeniMax Media Inc., which houses Bethesda Game Studios and its publishing arm, and ZeniMax Online Studios, where more than 200 positions were eliminated.
Initially, the WARN notice did not specify job titles, and Microsoft made no public announcement about leadership changes. That changed today when Maryland officials released a breakdown of the 379 impacted roles. The list included the title “studio head,” which Microsoft confirmed to Game File referred to the head of ZeniMax Online Studios.
Microsoft has since communicated the changes internally and promoted new leadership. Josh Henderson, previously head of business operations at ZOS, will now run the studio alongside Nick Giacomini, who was elevated to ESO game director last August.
The news of over 200 cuts at ZOS sparked public concern and sympathy, with many questioning the long-term health of The Elder Scrolls Online. As a massively multiplayer online game, ESO depends on a steady pipeline of new content to sustain its player base.
Earlier today, fans and workers gathered in Maryland to protest the layoffs at a rally organized by the Communication Workers of America, the union representing many affected employees.
In response to growing anxiety about the game’s future, a community manager posted on Saturday: “The plan is still to deliver great content, and we will hopefully have an update soon.”
The outgoing ZOS leaders struck an optimistic tone in their farewell note to staff. “We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO,” they wrote. “With exciting experiences still ahead for our players as we wrap up work for Update 51 and beyond, we believe that your passion, creativity, and commitment to each other and the community will continue serving as the heartbeat of ESO.”
The Maryland WARN notice lists several high-level roles among the cuts, including:
- Studio HeadWhile some of these titles match the departing ZOS leadership, Game File could not confirm whether all were from that studio. The full list also includes workers from Bethesda Game Studios and its central publishing office.Additional roles eliminated in Maryland include four animators, three bilingual community service leads for Chinese, Italian, and Japanese, a creative director for the ESO player life cycle, two food service workers, seven producers, and more than 60 senior QA testers.According to the WARN notice, nearly all 379 workers were informed of their layoffs on July 6. A footnote adds that approximately nine employees were notified of their position elimination prior to that date.The cuts come amid a broader contraction at Microsoft. The company announced its intention to acquire ZeniMax in 2020 and closed the $7.5 billion deal in March 2021. That purchase added acclaimed studios like Bethesda, Arkane, and id Software to Microsoft’s portfolio. Since then, output has included Indiana Jones and the Great Circle from MachineGames, Starfield from Bethesda, and the poorly received Redfall from Arkane Austin.In recent years, Microsoft has closed Tango Gameworks (later revived by Krafton) and shuttered Arkane Austin. Last week’s cuts hit the ZeniMax group hard, with 158 jobs eliminated in Texas, many at id Software, and 379 in Maryland. Xbox also announced it would begin a consultation process regarding Arkane Lyon, which is expected to result in a sale, closure, or other divestment. That team has been working on a game tied to Marvel’s Blade.
