Multiple reports cite Bethesda Game Studios employees saying Microsoft’s recent Xbox layoffs are affecting work on The Elder Scrolls 6 and lowering morale at the studio. According to sources speaking anonymously to IGN and referenced by other outlets, more than 50 people working on the RPG have been laid off. Employees describe the impact as crossing multiple disciplines, including programmers, artists, and designers, and say the change is creating anxiety about project timing. Some developers fear additional delays, noting that staffing reductions could require remaining teams to adjust schedules and possibly “crunch” to keep pace, though no final release date has been publicly confirmed in these reports. Additional concerns mentioned include the possibility that the studio could replace lost staff with cheaper or contracted labor, or hire new developers who must ramp up on Bethesda’s proprietary tools—both scenarios workers say could add time. One source also says a long-term employee who has been with the company since development of Morrowind was among those cut. The reports also frame the cuts as part of a broader Microsoft restructuring that includes job reductions across the company and studio divestments.