Matt Firor, boss of The Elder Scrolls On-line developer ZeniMax On-line Studios, has stepped down amid the cancellation of the studio’s unannounced MMO.
Sources near the mission informed IGN that this MMO was a model new IP unrelated to each Fallout and The Elder Scrolls, and that it had a sizeable workforce behind it. This workforce is now reduce as a part of the layoffs hitting Microsoft right now.

In a memo to workers verified by IGN, Jill Braff, head of studio for Bethesda and ZeniMax, named Joseph Burba as Firor’s substitute as the brand new studio director for ZOS.
Expensive Crew,
Constructing on Matt’s observe beneath, I first need to take a second to acknowledge the adjustments occurring right now throughout Microsoft Gaming, together with Bethesda/ZeniMax. Saying goodbye to proficient colleagues and mates is painful. These people have contributed meaningfully to our studios, our video games, and our tradition. I need to thank them for the contributions they’ve made that formed our journey as a workforce and as an organization.
Right now is a day to assist each other. Please know we’re working carefully with impacted staff to make sure they’re handled with respect and have our full assist throughout these tough occasions. When you’ve got any questions or issues, please contact your supervisor or HR assist workforce.
I additionally need to share right now that Matt Firor has determined to step down from his position as the top of ZeniMax On-line Studios, efficient July 14. I need to provide heartfelt because of Matt for his unimaginable management of ZOS during the last 18 years. As a driving pressure behind the success of The Elder Scrolls On-line, Matt has grown the sport into one of the crucial enduring and beloved MMOs within the trade.
I’m happy to announce that Joseph (“Jo”) Burba can be taking on for Matt Firor as the brand new Studio Director for ZOS. With over 20 years within the trade, his in depth expertise in dwell service multiplayer titles, and a powerful background in varied roles throughout ZOS the previous 13 years, Jo is well-prepared to guide the workforce into its subsequent chapter.
Matt, Jo, and I’ll work collectively to finalize our transition plan – extra to come back quickly. Within the meantime, please be part of me in wishing Matt all the perfect and congratulating Jo on his new position.
Thanks to all of you in your dedication to Bethesda/ZeniMax, our group, and to one another.
Jill
The reference to Matt’s observe right here is the prior memo Matt Booty, head of Xbox Recreation Studios, despatched to Microsoft gaming workers right now confirming the cancelation of Uncommon’s Everwild and the Excellent Darkish reboot, in addition to the closure of Xbox studio The Initiative. Booty additionally talked about the cancelation of “a number of unannounced initiatives” – the ZOS MMO was one in all them.
IGN has reviewed Booty’s memo and printed it in full, beneath:
Following Phil’s observe, I need to share extra concerning the adjustments to the Studios enterprise items.
Now we have made the choice to cease growth of Excellent Darkish and Everwild in addition to wind down a number of unannounced initiatives throughout our portfolio. As a part of this, we’re closing one in all our studios, The Initiative. These choices, together with different adjustments throughout our groups, replicate a broader effort to regulate priorities and focus assets to arrange our groups for larger success inside a altering trade panorama. We didn’t make these decisions frivolously, as every mission and workforce characterize years of effort, creativeness, and dedication.
Our total portfolio technique is unchanged: construct video games that excite our gamers, proceed to develop our greatest franchises, and create new tales, worlds, and characters. Now we have greater than 40 initiatives in energetic growth, continued momentum on titles delivery this fall, and a powerful slate headed into 2026.
For these instantly affected, we’re working carefully with HR and studio management to supply assist, together with severance, profession transition help, and the place potential, alternatives to discover roles on different groups.
To everybody throughout our studios: thanks. Your creativity and resilience proceed to outline who we’re. I consider within the power of our groups and the path we’re taking over the trail forward.
– Matt
Microsoft has made an enormous variety of cuts to its gaming enterprise since buying Activision Blizzard for $69 billion. It laid off 1,900 workers in January 2024, then made additional cuts only a few months later when it closed Redfall developer Arkane Austin and Hello-Fi Rush developer Tango Gameworks. In September 2024, Microsoft reduce an extra 650 workers from its gaming enterprise. And in Could this yr, Microsoft reduce an eye-watering 6,000 workers, or 3% of its complete workforce. Right now’s spherical of layoffs is the fourth to hit Microsoft’s gaming enterprise in 18 months.
Talking to IGN in June 2024, Xbox boss Phil Spencer stated: “I’ve to run a sustainable enterprise inside the corporate and develop, and which means typically I’ve to make arduous choices that frankly are usually not choices I like, however choices that any individual must go make.”
The cuts come scorching on the heels of Microsoft’s affirmation that it plans to launch next-gen Xbox consoles, and has a powerful presence at online game present gamescom.
Picture by Christian Petersen/Getty Pictures..
Wesley is Director, Information at IGN. Discover him on Twitter at @wyp100. You’ll be able to attain Wesley at [email protected] or confidentially at [email protected].