ZeniMax Online Studios Leadership Exits Amid Xbox Layoffs

ZeniMax Online Studios is losing several top leaders as part of Microsoft’s latest Xbox layoffs, according to a Game File report. The departures include studio head Joe Burba, Elder Scrolls Online executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz.

The changes follow WARN filings in Maryland tied to 379 ZeniMax job cuts, more than 200 of them at ZeniMax Online Studios. Microsoft confirmed to Game File that the “studio head” role listed in the filing referred to ZOS.

Burba, Kath, Lambert, and Diaz reportedly told staff they’ll remain during a transition period over the next few months. The studio will now be led by Josh Henderson, previously head of business operations, and Nick Giacomini, who was promoted to game director for Elder Scrolls Online last August.

The cuts are part of a wider round of roughly 1,600 layoffs across Microsoft’s gaming teams. Game File’s breakdown of the Maryland filing also listed senior roles including studio operations director, studio game director, studio audio director, and vice president positions, though not all of those roles were confirmed as belonging specifically to ZeniMax Online Studios.

The layoffs have raised obvious questions about Elder Scrolls Online, an MMO that depends on ongoing updates and live support. A community manager said over the weekend that the plan is still to deliver content, with more information expected later. In their note to employees, the outgoing ZOS leaders also referenced continued work on Update 51 and future ESO content.

Workers and fans in Maryland protested the cuts this week at a rally organized by the Communication Workers of America, which represents many affected employees. Microsoft has not publicly detailed how the leadership changes will affect ESO’s update schedule.