The gaming industry is facing another major shake-up, as Matt Firor, co-founder and longtime president of ZeniMax Online Studios, has officially announced his resignation. The news arrives in the wake of Microsoft’s recent round of mass layoffs, which are affecting thousands across its global divisions — including game studios like ZeniMax, the team behind The Elder Scrolls Online.
In a statement posted by ZeniMax Online’s official Twitter account on July 2, Firor confirmed that he will be stepping down later this month. Having helped build the studio from the ground up and led development on Elder Scrolls Online since day one, his departure marks the end of an era for the popular MMO.
Elder Scrolls Online Moves Forward — Without Its Founder
While Firor’s exit is significant, other key figures like Game Director Rich Lambert and Executive Producer Susan Kath will remain onboard, ensuring continuity for The Elder Scrolls Online. ZeniMax Online reassured fans that development on ESO will continue as scheduled, despite the executive shake-up.
In his farewell note, Firor emphasized his pride in the studio’s accomplishments and the strength of the team he leaves behind. For many fans, Firor’s leadership helped ESO become one of the most successful live-service MMOs of the last decade.
Canceled MMO and Wider Restructuring
Firor’s departure isn’t the only major story from ZeniMax. Reports surfaced that an unannounced MMO project codenamed Project Blackbird — allegedly in development since 2018 — has been canceled as part of Microsoft’s restructuring. While Microsoft has yet to confirm the cancellation, insiders suggest the project was shelved during this latest wave of cutbacks.
These changes are part of Microsoft’s plan to lay off approximately 9,000 employees, accounting for about 4% of its total workforce. The full extent of the layoffs across Bethesda and its subsidiaries remains unclear, but the departures of key leaders suggest a major pivot behind the scenes.
What This Means for the Future of ZeniMax Online
With Firor leaving and Project Blackbird reportedly scrapped, ZeniMax Online appears to be doubling down on Elder Scrolls Online as its flagship live-service title. While many fans are optimistic about the MMO’s future under its remaining leadership, others are understandably wary about the long-term impact of Microsoft’s layoffs on creativity and studio morale.
As the dust settles, one thing is certain: ZeniMax Online is entering a new era. Whether it thrives or struggles in the months ahead will depend heavily on how the studio adapts — and how much support it receives from Microsoft and Bethesda moving forward.