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Reading: ZeniMax Online Studios union speaks out on Microsoft layoffs, states those impacted will “depart with dignity”
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ZeniMax Online Studios union speaks out on Microsoft layoffs, states those impacted will “depart with dignity”

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Last updated: 15.07.2025 17:33
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The ZeniMax Online Studios developer union has spoken out following significant cuts that impacted a vast number of staff at the studio, resulting in uncertain futures for many developers and the cancellation of unannounced MMO Blackbird.

The union, formed in December last year, released a public statement addressing the layoffs. It confirmed that the 22 developers represented by the union who were working on Blackbird remain employed at the moment, but how long that will remain the case remains unclear.

It stated bargaining continues between Microsoft and the union, and while it acknowledges that layoffs may lie in the future for various represented staff, it hopes those who’ll lose their jobs will ” be able to depart with dignity.”

Check out this trailer for The Elder Scrolls Online hereWatch on YouTube

The full statement reads as follows: “Earlier this month, Microsoft indefinitely shelved an unannounced MMORPG at ZeniMax Online Studios, a shock to the 222 ZOSU-CWA developers working on the project. It has been heartening and validating to see our game mentioned in the press and by players that would have loved to see the results of our work.

“Undoubtedly, a future has been stolen from many of us and our community will never experience an amazing game. However, despite discussions regarding the status of our employment, the fact is: we have not yet been laid off.

“While we understand that for most of us something like a layoff is inevitable, last December both the teams behind The Elder Scrolls Online (ESO) and the unannounced project voted overwhelmingly to form a union and establish ZeniMax Online Studios United-CWA (ZOSU-CWA). Worker-volunteers elected to represent the interests of our union are currently bargaining with Microsoft for the benefit of our impacted teammates.

“While Microsoft and ZOSU-CWA bargain over how we move forward following the project closure, the developers behind the unannounced project remain employees of ZeniMax Online Studios with full pay and benefits.

“On July 2nd, our lives were upended without prior notice or communication from Microsoft leadership and without clear understanding about the status of our employment. In light of this, our union came together with urgency, gathering and distributing information and resources to our affected members.

“Where Microsoft has failed to support the talented craftspeople who have generated billions in revenue, our union has stepped up to provide clarity and support.

“It is true that a layoff may be in the future for some of our members. However, as a result of our organising, we are able to ensure that those impacted will be able to depart with dignity.

“More importantly, the work of ZOSU-CWA will continue so that our remaining teammates – the stalwart developers of ESO – can follow in the footsteps of our colleagues across other departments and studios at Microsoft, including our union siblings at ZeniMax Workers United (ZWU-CWA). We look forward to other units who will soon ratify fair contracts that will guarantee the rights we all deserve.”

In the wake of the MMO’s cancellation, studio head Matt Firor announced his departure from the company. Across all studios hurt by the layoffs, roughly 9,000 developers have been affected, from companies including Rare, Turn10, and more.

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