Bethesda is restructuring around its “strongest franchises”, its head of studio has told employees, following sweeping layoffs across the Xbox business.

Alongside yesterday’s confirmation of staff cuts at Microsoft’s gaming division, Bethesda boss Jill Braff sent a note to her own staff detailing significant changes at the Elder Scrolls and Fallout publisher.

According to IGN, Bethesda has been hit “particularly hard” by Xbox’s layoffs, with staff across its development studios either already told they are cut or facing an uncertain future.

In an e-mail to staff, Braff said that the cuts and strategy change “reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation.”

She wrote: “As we look ahead, we will meaningfully evolve how we operate. For decades, Bethesda has organized its business around the individual roadmaps of our largely independent development studios, supported by centralized publishing and corporate teams.

“This model enabled us to create some of the industry’s most beloved franchises. However, rising player expectations, increasing development complexity, and a more competitive market have changed the economics of our industry.”

Braff continued: “To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what’s next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole.

“From there, we’ll align the right talent, technology, and resources across the organization to deliver on those priorities.”

Bethesda will reportedly focus on Fallout, Quake, and more

The studio head’s comments follow a Bloomberg report claiming that Bethesda was set to undergo a significant overhaul and pivot to focus on its biggest franchises: Fallout, The Elder Scrolls, Doom, Quake, and Wolfenstein.

Bethesda’s other notable game franchises include Starfield, Indiana Jones and the Great Circle, and Wolfenstein. Microsoft confirmed on Monday that Dishonored and Deathloop studio Arkane will be divested.

However, despite a reported willingness to focus on its franchises, according to former employees posting on social media, Id Software has been hit with a significant number of layoffs.

In her e-mail, Braff claimed that “by working more closely across the organization, sharing expertise and capabilities, and focusing our investments on the opportunities with the greatest potential, we believe we can better support our franchises and IP with meaningful long-term potential.”

She added: “This does not change the importance of exceptional creative work, craftsmanship, and innovation – which is what makes Bethesda special. Our studios’ and teams’ identities, talent, and expertise remain essential to our success.

“What changes is how we align those strengths, bringing them together around our franchises and IP, to position Bethesda for long-term growth and continued investment in our future.”