Bethesda Devs Say Microsoft Acquisition Led to Yearly Layoffs and Institutional Knowledge Loss

Former developers at Bethesda's parent company Zenimax are speaking out about changes they've seen since Microsoft acquired the studio in 2020. According to lead character artist Alex Nguyen, layoffs have become a yearly occurrence, which is a stark contrast to before the acquisition.

The layoffs not only affect middle management but also hit employees who were on the ground working on games, causing damage to worker morale and brain drain. Nguyen notes that the layoffs are particularly concerning because they often result in experienced staff members leaving the company, including those who had planned to retire there.

Another former developer, technical producer Nathan Hahn, claims that the company sat on a proposal for reducing staff submitted by employees four months before performing the layoffs, which he believes was mishandled. The layoffs have resulted in a significant loss of institutional knowledge and are affecting game development.