Microsoft layoffs hit Bethesda and id Software hard

Microsoft's latest round of layoffs has dealt a heavy blow to its gaming division, particularly affecting legendary developer id Software and Bethesda. According to industry reports, id Software, the pioneer of first-person shooters, has undergone a reorganization that saw many employees lose their jobs. A LinkedIn post expressed sadness that the studio has been reduced to "just another reorganization of assets."

The situation is even more dire for The Elder Scrolls Online (ESO). Kotaku reports that as much as half of the ESO development team at Zenimax Online has been laid off. Bethesda President Jill Braff sent an email to staff expressing "sincere gratitude" to affected colleagues and stating that the company needs to change course. She emphasized that Bethesda must focus on its strongest franchises, which could spell trouble for newer titles like Starfield.

IGN reports that Bethesda Studios were "hit particularly hard" by the layoffs, leaving remaining employees facing an "uncertain future." Microsoft plans to lay off an additional 1,600 workers this fiscal year, on top of the 1,600 let go the previous day. In her email, Braff wrote, "We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn't make a day like today any easier."