Microsoft is shutting down four studios functioning under the Bethesda/ZeniMax umbrella, which will impact Redfall developer Arkane Austin, Hi-Fi Rush developer Tango Gameworks, and Mobile Doom developer Alpha Dog Games.
ZeniMax subsidiary Roundhouse Games will be merged into ZeniMax Online Studios.
The closures are being attributed to the reprioritization of titles and resources to focus on high-impact games, as per the head of Xbox Game Studios, Matt Booty.
Arkane Austin will close with some members of the team joining other studios to work on projects across Bethesda.
Hi-Fi Rush will continue to be available to players on the platforms it is available on.
The team at Roundhouse Games will be joining ZeniMax Online Studios to work on The Elder Scrolls Online.
These changes will also result in a small number of roles across select Bethesda publishing and corporate teams being eliminated.
This move comes after Microsoft axed nearly 2,000 Xbox jobs in January, which included workers from Activision Blizzard.
Microsoft plans to prioritize high-impact games and bolster Bethesda's portfolio of blockbuster games and beloved worlds.
Bethesda remains one of the key pillars of Xbox with a strong lineup of games on the horizon.