Bethesda is among the many game studios affected by the ongoing mass layoffs at Xbox, which are set to cut 3,200 jobs by the end of the 2027 fiscal year. At least 1,600 employees have already been let go, including Skyrim and Fallout veterans with decades-long careers like Christiane Meister and Ray Lederer. It apparently was a rude awakening for staff at the storied studio, who’d hoped their work on such legendary franchises would insulate them from Microsoft‘s cost-cutting.
“There was an impending sense of doom, and it was like, man, is it going to be us?” Anne Barrett, who worked at Bethesda Game Studios Austin, tells The Guardian. “We thought we were safe. I mean, Bethesda Games Studios is Skyrim, it’s Fallout. We have really highly anticipated stuff coming out. We thought that the work we were doing was going to keep us safe. And instead, we got brought into a meeting that was two minutes long, to end, in some cases, decades of career at the company. It was just devastating.”
Employees seemingly didn’t have any more insight into the layoffs than the public did. They worried over the same reports of mass job cuts that the rest of us were all reading. The Guardian reports that they all learned of the mass layoffs when Asha Sharma published her “resetting Xbox” memo for the world to read. An hour later, people were called into meetings where they learned who had been fired.
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“I remember, I laughed the whole day because I was in complete disbelief,” Barrett says. “I was like, there’s no way they’re doing this. That’s how I processed it. Some of my co-workers were just devastated. I mean, breaking down. They did not understand what was going on. We had people who were just in really dark places. I think it hit me probably the next day. I felt like, wow – I just spent seven years doing all this. In college, people called me Bethesda because it was my dream to work here. And that was just … gone.”
There are numerous upcoming Bethesda games in various stages of production, including the likes of The Elder Scrolls 6 and Fallout 5. Series fans have been waiting well over a decade for both of those RPGs, and they’ll likely be among the biggest titles Xbox has ever released. Yet it’s still been willing to cut the veteran talent who helped make the previous entries great.
“I don’t know how you create games at the quality level we were without the institutional knowledge that’s been lost,” Barrett says. “We have proprietary tech. Our titles have a very well-known visual identity. And when you lose the people who built the tech, when you lose the people who were improving it, you can’t just throw new people at that problem, right? You can’t replace an artist with someone brand new and say: ‘Now replicate what they were doing 15, 20 years ago.’ The company has said that they can do it. I disagree.”
Barrett says that her “view of the industry has definitely been damaged.” arguing that “there’s been a loss of sight over why AAA games were so valuable to players. It wasn’t just that they were big and shiny. It was that [the studios] had the resources to invest in creativity. What I see now is the same formula over and over and over again. In any entertainment industry, if you do that enough times, people get tired of it. I would love for us as an industry to get back to actually being creative and investing in that creativity.”
