Update from July 6, 2026, at 4:30 p.m. BST / 9:30 a.m ET / 6:30 a.m. PT:
Jason Schreier has added that studios such as id Software (DOOM) and ZeniMax Online Studios (The Elder Scrolls) will not be closing. However, many employees at these companies are being laid off starting today.
Original article
(Almost) everything is about to change at Xbox. The company will lay off 3,200 employees during its fiscal year and spin off at least four studios, which will either be sold or regain their independence.
Bethesda Softworks is not spared from this major restructuring either. As a result, the publisher as a whole will see its operations overhauled. Going forward, the company will focus exclusively on its flagship franchises: Fallout, The Elder Scrolls, DOOM, Wolfenstein, and Quake.
It’s worth noting that Arkane Studios, which was under Bethesda’s management, is seeking a buyer.
