Paul David Nuñez July 9th, 2026 - 3:14 PM
Another day, another report on how XBOX’s restructuring and layoffs are impacting both the developers and the development of games, and in this case, with The Elder Scrolls 6. Multiple staff at Bethesda Game Studios say this week’s XBOX layoffs will have a “substantial and cascading effect” on the development of The Elder Scrolls 6.
The layoffs have eliminated more than 50 employees at the company, including “key, high-performing people in the trenches” building the long-awaited successor to Skyrim. Staff say that the layoffs have shattered morale, raised the risk of future development crunch, and has increased the likelihood of a release getting pushed farther out than what they wanted.
Those of us in Rockville were inspired by the Dallas team’s vigil for those let go Monday and made our own Celebration of Service. We set it up this morning in the common area of the first floor at 9am today.
— Bethesda Game Studios Union (@bethesdaunion.bsky.social) July 8, 2026 at 7:38 AM
Photos have been shared on social media of multiple makeshift “celebrations of service” memorials within the company’s offices. These feature the photos of laid off workers alongside bouquets of flowers. The HR department has since ordered one of these displays to be taken down.
Unfortunately, HR made our office manager take this down almost immediately. They said because it’s in a common area, it had to be removed.
We’ve used common areas for many things as a team, including fan works, but HR seems to believe that a Celebration of Service is inappropriate.
— Bethesda Game Studios Union (@bethesdaunion.bsky.social) July 8, 2026 at 7:39 AM
“Their loss will have a substantial and cascading effect on the game and morale of this studio,” one Bethesda staff member told IGN. “It’s been a mix of every discipline: programmers, artists, and designers,” said another. “One person who’s been at the company since Morrowind was cut.”
Bethesda Games Studio Union has shared a message on the Xbox Player Voice feedback platform. They seek to raise wider awareness on the job losses and demonstarting to Microsoft how fans are unhappy with the layoffs. The post has 2,888 upvotes and counting and is now in the top 20 Xbox user suggestions on the site. Microsoft uses the platform to enact on fan feedback on its console platform.
