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ZeniMax Online Studios Has Yet To Receive Any Layoffs

July 15, 2025 by Dennis Patrick

Developers who were previously working on Blackbird are still employees with full pay and benefits.

I’m sure you recall the headlines that popped up this month from Microsoft. Xbox had a constant barrage of headlines appearing online that were anything but positive. We saw game cancellations, layoffs, and even the shuttering of The Initiative. Among the games that were cancelled was an unannounced MMO title that ZeniMax Online Studios had been working on.

The developers at the studio were working on a project called Blackbird. This Blackbird project wasn’t a game that had already been unveiled to the public, so details about what it would offer players are a mystery. However, according to reports that surfaced online about the game, the production was going well. So, when the cancellation came from Microsoft, it was likely more than a shock to the team working on the game.

ZeniMax Online Studios Have Yet To See Layoffs

While we had hoped the layoff announcements were over for Microsoft, it may not be. A new post from the ZOS United-CWA union confirmed that this might be something in the works. The union noted that, out of the over 200 developers working on the Blackbird MMO project, not a single one had been removed from the studio.

Instead, all the developers that have been working on the game remain full employees at ZeniMax Online Studios with full pay and benefits. It was last December that the developers voted to form a union, and as of now, the union is currently negotiating with Microsoft on behalf of the impacted teammates.

Among the closing statements of the union, they noted that layoffs may be in the future for some members. We don’t know just how many members from the development team will be affected. At the very least, ZOS-CWA will work with those impacted, for if and when their time comes, to see an exodus from ZeniMax Online Studios.

This wasn’t the only piece of news to emerge this week regarding the development of Blackbird. If you don’t recall, a rumor surfaced online that Blackbird was canceled so that Xbox could use the resources on additional Fallout games.

Meanwhile, in other related news to Xbox, King recently made some headlines. A new report has surfaced online, suggesting that a sizable number of developers have previously worked on delivering various AI tools. However, now that these tools are trained, it appears that King is laying off some staff and allowing the AI tools to be used in their place.

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Category: UpdatesTag: Blackbird, Xbox, ZeniMax Online Studios

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