Virtuos, the studio behind Oblivion...

Virtuos, the studio that developed The Elder Scrolls 4: Oblivion Remastered, is reportedly laying off seven percent of its staff, or around 300 employees, according to Gauthier Andres, a reporter and co-founder at Origami. The studio has provided support on a number of large game projects — including a recent patch for Cyberpunk 2077 — and employs over 4,200 people across the US, Europe and Asia.

The brunt of the layoffs are happening to Virtuos employees in China, where Andres reports that around 200 positions are being eliminated. Virtuos’ teams in France, who were primarily responsible for the surprise release of Oblivion Remastered back in April, are also expected to be impacted.

Besides reviving Bethesda classics, Virtuos has contributed work to the upcoming Metal Gear Solid Delta: Snake Eater and several ongoing live service games, like Dune: Awakening and Sea of Thieves. Nothing about the company’s output or the critical reception of its games would suggest it needs to conduct layoffs, but that reflects the current precarious state of the games industry. Even having theoretically steady work doing post-release support and game remasters isn’t enough.

Virtuos’ layoffs follows the sweeping cuts Microsoft made to its Xbox division in early July. Microsoft reportedly cancelled games, like Rare’s long-in-development Everwild, and shutdown whole studios, like The Initiative. Romero Games, which had an unannounced funding deal with Microsoft, was also forced to cancel its current project, though it hopes to find a new publishing partner.