‘Our lives were upended:’ ZeniMax union workers respond to Microsoft layoffs

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Image via ZeniMax Online Studios

Union workers at ZeniMax Online Studios have issued a public response to Microsoft’s latest round of mass layoffs, which reportedly impacted around 9,000 people including many within the company’s video game division.

ZeniMax Online Studios United-CWA (ZOSU-CWA), one of a number of unions to have formed within Xbox Game Studios with support from the Communications Workers of America (CWA), said employees feel as if their “future has been stolen” by their parent company.

“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, ” reads a statement posted on Bluesky.

“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.”

ZOSU-CWA confirmed it remains in discussions with Microsoft over how it can move forward following the project closure and reiterated the developers behind the unannounced project “remain employed of ZeniMax Online Studios with full pay and benefits.”

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

ZOSU-CWA said it remains possible that some members might be laid off, but stated it will ensure those impacted are able to “depart with dignity.”

“A future has been stolen from many of us”

The union also lambasted Microsoft for sowing confusion when announcing the job cuts internally. “On July 2nd, our lives were upended without prior notice or communication from Microsoft and without clear understanding about the status of our employment,” it continued.

“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.”

Microsoft has so far refused to respond to multiple requests for comment following its fourth major layoff round in less than two years. We have asked the company to clarify how many people stand to be impacted across its various studios and divisions, and whether it remains committed to working with third-party studios through its publishing division after funding for at least one notable project was reportedly pulled overnight.

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Those questions remain unanswered.

Microsoft did provide a comment on the day the cuts were announced. In a statement sent to Game Developer, an Xbox spokesperson said the “workforce changes” were being made to “position the company and teams for success in a dynamic marketplace.” They added that Microsoft is no stranger to making layoffs “even in the best of times,” and noted the company is keen to increase its agility by “reducing layers with fewer managers.”

“We will empower employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities,” they continued. “To enhance our efficiency, we will eliminate redundancy by streamlining our processes, products, procedures and roles.”

The full scope of the layoffs remains unclear. 

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