“We Thought We Were Safe” – Bethesda Developers Thought Skyrim and Fallout Would Protect Their Jobs From Xbox Layoffs

Bethesda Game Studios was among the Microsoft-owned developers affected by the major Xbox restructuring announced in July 2026. Microsoft said approximately 3,200 positions would be eliminated across its gaming division during the fiscal year, with around 1,600 roles affected immediately. The cuts also impacted teams across Bethesda and ZeniMax, despite the studios continuing to work on some of the company’s most recognizable franchises. For some Bethesda employees, the layoffs were especially difficult because they believed the importance of franchises such…