Zenimax Online Head Matt Firor Exits After Layoffs, MMO Cancellation

▼ Summary
– Matt Firor, president of Zenimax Online Studios, is stepping down after 18 years, following layoffs and the cancellation of an upcoming MMO.
– Leadership of Zenimax Online Studios and *The Elder Scrolls Online* will transition to Jo Burba, Susan Kath, and Rich Lambert.
– Employees at Zenimax Online Studios expressed shock and disappointment after being locked out of accounts and laid off abruptly.
– Microsoft’s layoffs also impacted other studios, including Rare (with *Everwild* cancelled) and Turn 10, with *Perfect Dark* also cancelled.
– Xbox head Phil Spencer is confirmed to remain in his role despite the widespread layoffs across Microsoft’s gaming divisions.
The gaming industry faces another major shakeup as Zenimax Online Studios president Matt Firor announces his departure following significant layoffs and the cancellation of an unannounced MMO project. The veteran executive confirmed his exit after 18 years leading the studio behind The Elder Scrolls Online, marking the end of an era for one of Bethesda’s key development teams.
Firor shared his decision through an official statement, expressing confidence in the studio’s future under new leadership. “The studio and The Elder Scrolls Online will be in great hands,” he wrote, naming Jo Burba as the new studio head alongside executive producer Susan Kath and game director Rich Lambert. Despite stepping away, Firor emphasized his continued support for the game, vowing to remain an active player in its thriving community.
The announcement followed reports of abrupt terminations at Zenimax Online, with employees revealing on social media that they had been locked out of company accounts without warning. Senior producer Chris Linn confirmed the cancellation of the studio’s mystery MMO project, calling it “amazing” while searching for new opportunities. Executive producer Sean Dunn described the situation as one of the most crushing moments of his decades-long career, while lead content manager David Davies lamented the loss as “pointless” and “heartbreaking.”
These cuts were part of broader layoffs across Microsoft’s gaming division, affecting multiple studios under the Xbox umbrella. Rare, known for Sea of Thieves, reportedly lost several staff members, including longtime director Gregg Mayles, while its anticipated title Everwild was scrapped. Turn 10 Studios saw roughly half its team let go, and even mobile giant King faced reductions. Amid the turmoil, Xbox head Phil Spencer remains secure in his position, with company representatives confirming he has no plans to step down.
The industry-wide restructuring raises questions about Microsoft’s long-term strategy for its gaming portfolio, particularly following its high-profile acquisition of Activision Blizzard. For now, Zenimax Online’s focus shifts to maintaining The Elder Scrolls Online under fresh leadership, while former employees grapple with the fallout of sudden project cancellations and job losses.
(Source: EUROGAMER)