Xbox cuts hit ZeniMax, Obsidian staff numbers

Microsoft’s latest Xbox layoffs are coming into clearer view through state filings, and the numbers show the cuts reached deep into Bethesda and Obsidian operations. Game File reported on July 9 that 158 ZeniMax employees in Texas and 52 Obsidian workers in California were affected in the round of layoffs Microsoft announced on July 6. A separate Windows Central report said 136 of the Texas cuts were at id Software, the Doom studio, and that Bethesda’s Austin office was also hit. The filings matter because Microsoft did not break out studio-by-studio totals when it announced the broader reductions. The company said earlier this week that about 1,600 jobs were being eliminated immediately across gaming, with deeper restructuring to follow, according to Game File’s reporting. The Texas and California notices offer the first state-level count tied to named Xbox studios in this round. (gamefile.news) ### Which studios show up in the filings so far? Texas records reviewed by multiple outlets show 158 ZeniMax layoffs in the state. Windows Central, citing the same filing and sources, said 136 of those jobs were at id Software and another 22 were at Bethesda Game Studios’ Austin office. Other reports based on the filing described the id cuts as roughly half the studio, though Microsoft has not publicly confirmed a percentage. (gamefile.news) California records cited by Game File show 52 layoffs at Obsidian Entertainment. Obsidian, based in Irvine, is one of Xbox’s main role-playing game studios and released Avowed earlier this year. Game File said the California WARN notice was received on July 9. ### What do the id Software and Bethesda numbers tell us? The 136-job figure at id Software is the sharpest single studio number to emerge so far from this week’s cuts. (finance.yahoo.com) Windows Central reported that sources said several departments were affected and that Bethesda’s Austin office also lost staff. Kotaku, citing the Texas filing, reported that 96 of the layoffs were at id’s Richardson office and 40 were remote workers in the state. (gamefile.news) IGN reported on July 9 that current and former Bethesda staff said the layoffs would have a “substantial and cascading effect” on The Elder Scrolls 6, with concerns about delays, crunch and the loss of experienced developers. IGN said those comments came from workers speaking on condition of anonymity. (finance.yahoo.com) ### What is happening at Obsidian beyond the headcount? The Verge reported on July 9 that Microsoft’s broader Xbox reset is redirecting Obsidian toward a new Fallout game and away from some prior plans, including an Avowed sequel. The report said Josh Sawyer, the director of Fallout: New Vegas, is leading the new title. The Los Angeles Times separately reported that the strategy remained in flux and could still change. (in.ign.com) Obsidian’s 52 layoffs therefore land at the same time the studio is being reassigned inside Microsoft’s portfolio. The Verge said multiple projects were canceled as Xbox narrowed its focus to higher-priority work. ### When do these layoffs take effect? Sept. 4 appears in the state WARN notices cited by outlets covering both the Texas and California filings. (theverge.com) That date is the formal effective date for the layoffs reported by Game File and in follow-on coverage of the Texas notice. More state filings could still surface in the coming days. Maryland notices reported by other outlets point to additional ZeniMax-related cuts there, and further reporting from Microsoft, Bethesda, Obsidian or labor agencies could add to the studio-by-studio picture before the Sept. 4 effective date. (theverge.com) (thisweekinvideogames.com) (newsbang.com)