Matt Firor, president of Zenimax Online Studios, has announced he will step down later this month following widespread layoffs and the cancellation of the studio’s upcoming MMO project.
In a statement posted on the official Zenimax Online Studios social media, Firor reflected on his 18 years leading the company and expressed confidence in the new leadership team. He named Jo Burba as the incoming Studio Head, alongside Executive Producer Susan Kath and Game Director Rich Lambert, praising their roles in steering The Elder Scrolls Online (ESO) through major expansions.
Firor added that while he will no longer work on ESO, he plans to continue supporting the game’s community as a player. “There are many more stories to be told, adventures to be had,” he said, emphasizing the ongoing legacy of the game and its fans.
The announcement follows staff revealing their unexpected departures on social media after being locked out of work accounts. Senior producer Chris Linn confirmed the MMO project’s cancellation on LinkedIn and is now seeking new remote opportunities.
Other Zenimax Online Studios team members expressed disappointment. Executive producer Sean Dunn called the cancellation “one of the biggest disappointments” of his 35-year career, while lead content manager David Davies described it as a “pointless loss and waste.”
This is part of a broader wave of layoffs across Microsoft-owned studios. Rare, known for Sea of Thieves and Banjo-Kazooie, reportedly laid off staff and canceled its upcoming title Everwild, with long-time director Gregg Mayles leaving after 35 years.
Other affected projects include the cancellation of Perfect Dark, significant layoffs at Turn 10 (approximately 50% of staff), and workforce reductions at King.
Despite the turmoil, Xbox leadership remains stable. Kari Perez, head of Xbox communications, stated that Xbox chief Phil Spencer is not planning to retire anytime soon.