Bethesda Devs Say Layoffs Were Rare Before, But Became A Yearly Thing After Microsoft Takeover

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“Without us, Bethesda games aren’t Bethesda games"

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  • Microsoft took over ZeniMax along with its companies like Bethesda in 2021. 
  • Since then, the company has struggled with consistent layoffs and game cancellations. 
  • Devs say that layoffs were rare before, but have now become an annual problem. 

Microsoft has been struggling to keep its boat afloat for a long time now. Its hardware sales have completely plummeted, and the software side isn’t doing any better either. Additionally, layoffs and studio closures have also become routine.

Xbox developers held rallies to support laid-off colleagues and to protest against the continued reduction in headcount. Bethesda employees also highlighted how layoffs have become an issue since Microsoft’s takeover. 

Why it matters: Bethesda’s parent company, ZeniMax, was acquired by Microsoft back in 2021, before which they had a tight collaborative partnership, but layoffs weren’t that of a problem as they are now. 

Fallout, Elder Scrolls, And Starfield
Bethesda has been struggling with constant layoffs ever since Microsoft took over

Speaking to Kotaku, the Bethesda developers said that before being acquired, layoffs were quite rare, but since they’ve been taken over by Microsoft, they have become a yearly affair, and danger always seems to be looming. 

But since since we’ve been under Microsoft…it feels like something has changed. We didn’t have layoffs before, and now we all of a sudden we have yearly layoffs

 

Xbox & Bethesda Games Showcase
This has been the general state for most of the Xbox-owned studios 

They claimed that layoffs weren’t nonexistent, but they were very rare, and that is the reason they had such long-term employees, which isn’t the case anymore. Employees hoped that they’d retire at Bethesda at that time. 

However, now there is a lot of uncertainty. Some former developers have even claimed that you don’t have any job security at Microsoft, and there are chances that you will be laid off even if you do exactly what’s asked of you. 

What are your thoughts on Bethesda devs saying layoffs have become a yearly problem since Microsoft took over? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.

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