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

In a memo to workers verified by IGN, Jill Braff, head of studio for Bethesda and ZeniMax, named Joseph Burba as Firor’s alternative as the brand new studio director for ZOS.
Expensive Workforce,
Constructing on Matt’s observe under, I first need to take a second to acknowledge the modifications taking place immediately throughout Microsoft Gaming, together with Bethesda/ZeniMax. Saying goodbye to proficient colleagues and buddies 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 group and as an organization.
Immediately is a day to help each other. Please know we’re working intently with impacted staff to make sure they’re handled with respect and have our full help throughout these tough occasions. In case you have any questions or issues, please contact your supervisor or HR help group.
I additionally need to share immediately that Matt Firor has determined to step down from his position as the pinnacle of ZeniMax Online Studios, efficient July 14. I need to provide heartfelt because of Matt for his unbelievable management of ZOS over the past 18 years. As a driving pressure behind the success of The Elder Scrolls Online, Matt has grown the sport into one of the vital enduring and beloved MMOs within the business.
I’m happy to announce that Joseph (“Jo”) Burba might be taking up for Matt Firor as the brand new Studio Director for ZOS. With over 20 years within the business, his intensive expertise in stay service multiplayer titles, and a robust background in numerous roles throughout ZOS the previous 13 years, Jo is well-prepared to steer the group 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 a part of me in wishing Matt all the very best and congratulating Jo on his new position.
Thanks to all of you in your dedication to Bethesda/ZeniMax, our neighborhood, 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 immediately 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 considered one of them.
IGN has reviewed Booty’s memo and revealed it in full, under:
Following Phil’s observe, I need to share extra in regards to the modifications to the Studios enterprise items.
We’ve got 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 considered one of our studios, The Initiative. These selections, together with different modifications throughout our groups, mirror a broader effort to regulate priorities and focus assets to arrange our groups for higher success inside a altering business panorama. We didn’t make these selections calmly, as every mission and group signify years of effort, creativeness, and dedication.
Our general portfolio technique is unchanged: construct video games that excite our gamers, proceed to develop our largest franchises, and create new tales, worlds, and characters. We’ve got greater than 40 initiatives in lively growth, continued momentum on titles delivery this fall, and a robust slate headed into 2026.
For these immediately affected, we’re working intently with HR and studio management to supply help, 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 imagine within the energy of our groups and the route 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 minimize an additional 650 workers from its gaming enterprise. And in Might this 12 months, Microsoft minimize an eye-watering 6,000 workers, or 3% of its complete workforce. Immediately’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 mentioned: “I’ve to run a sustainable enterprise inside the corporate and develop, and meaning typically I’ve to make onerous selections that frankly are usually not selections I like, however selections that any person 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 robust presence at online game present gamescom.
Picture by Christian Petersen/Getty Photographs..
Wesley is Director, Information at IGN. Discover him on Twitter at @wyp100. You’ll be able to attain Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
