ZeniMax Union Clarifies Team Hasn’t Been Laid Off Yet, Criticizes Microsoft’s Cancelling Their MMO

While it’s certainly good news to hear that the team wasn’t swept up in Microsoft’s massive cuts, unfortunately, they also said that they “understand that for most of us something like a layoff is inevitable” with the cancellation of their game.

ZOSU also criticized Microsoft and outlined the significance of the union in providing some semblance of clarity to its members, as its parent company offered little. “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,” says the statement. “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 organizing, we are able to ensure that those impacted will be able to depart with dignity.”

According to reporting from Bloomberg’s Jason Schreier, ZeniMax Online Studios’ cancelled game, Blackbird, received nothing but praise from company leadership. Allegedly, during a company meeting, CEO Phil Spencer was so enamoured with the game that another executive had to take the controller out of his hands for them to continue their meeting. The game was planned for a 2028 release, and Schreier described it as a looter shooter with a cyberpunk aesthetic.

While the massive cuts that Microsoft made are typically indicative of a recession or poor fiscal performance, the company hit a record $262 billion in revenue last year with a net income of $93 billion. The mass layoffs come as the company makes a huge pivot towards AI. If a 3.74 trillion dollar company is willing to shelve a promising game from a studio that reportedly brings in $15 million of revenue a month, it’s clear that something is deeply wrong with both that company and the industry writ large.