Bethesda Hit Hard by Layoffs, Studio Head Says “We Need to Change Course” – Rumor

The Elder Scrolls and Fallout studio is reportedly shifting its focus to "our strongest franchises" to ensure "future growth."

Posted By | On 07th, Jul. 2026

fallout 76

Between Obsidian apparently losing 25 percent of its workforce and significant impacts to id Software and ZeniMax, IGN is reporting that The Elder Scrolls and Fallout developer Bethesda has been hit “particularly hard” by recent layoffs.

Studio head Jill Braff allegedly sent out an email to staff, noting that these changes “reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation.”

“To be successful in the future, we need to change course. 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.”

The current plan (until it isn’t the plan, as Xbox CEO Asha Sharma would say) is “to best position Bethesda for future growth.” According to Braff, that apparently means “shifting from a planning model primarily centered on what’s next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole.”

That would certainly align with rumors that anyone not working on The Elder Scrolls and Fallout is at risk. Of course, there are some exceptions, as Bloomberg’s Jason Schreier noted that work would continue on Doom, Quake and Wolfenstein. The latter reportedly has a TV show and sequel in the works, and seems relatively safe, even having some involvement with Arkane Studios (which is currently undergoing consultations).

With the demand for Fallout 5 and The Elder Scrolls 6 (announced over eight years with still no release date), you could argue that Bethesda should have shifted focus years ago. Of course, this seemingly means that Starfield is left in the dust following a disappointing new DLC and the Free Lanes Update, which failed to really reignite player interest, at least going by Steam numbers.

Stay tuned for more updates because, given the scale of layoffs, there are likely to be more changes inbound.


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