Bethesda shifts to a "franchise-centric" planning approach as part of Xbox's organizational restructuring

Image credit: Xbox

Bethesda is adopting a new "franchise-centric" strategy aimed at enhancing its focus on long-term stability and growth. This reorientation is part of a wider restructuring happening at Xbox that was announced yesterday, resulting in 3,200 layoffs, or 20% of its workforce.

In a message to employees (via IGN), Bethesda's CEO, Jill Braff, stated that the Xbox restructuring "reflects the realities of our industry and business." To maintain future success, Bethesda plans to "return to sustainable growth."

Braff described the transition from focusing on each studio's next projects to leveraging prominent franchises and creating a content roadmap that benefits both players and the company. "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," she explained.

"From there, we'll align the right talent, technology, and resources across the organisation to deliver on those priorities," Braff added. She emphasized the importance of collaboration within the company, sharing knowledge and capabilities, and concentrating investments in opportunities with high potential. "By working more closely across the organisation, sharing expertise and capabilities, and focusing on our investments, we believe we can better support our franchises and IP with meaningful long-term potential."

This change in strategy takes place amid significant downsizing within the company's departments. ZeniMax Online Studios is undergoing substantial workforce reductions, impacting up to half of its employees. Consultation processes have started at Arkane Lyon, and unspecified job cuts have occurred at both Bethesda Softworks and Id Software.