No ZeniMax Online Studios Employees Laid Off After Project Blackbird Cancellation

No Layoffs at ZeniMax Online Following Project Blackbird Cancellation

In a recent announcement, ZeniMax Online Studios (ZOS) confirmed that no developers have been laid off in the aftermath of the cancellation of Project Blackbird. This revelation comes as a relief to the 222 developers engaged on the project, who expressed their disappointment regarding its discontinuation.

Response from ZOS United-CWA

ZOS United-CWA, the union representing ZeniMax Online developers, shared their sentiments on Bluesky, emphasizing their gratitude towards the media and gaming community that were anticipating the project. Unlike other gaming studios that frequently resort to layoffs after project cancellations, ZeniMax’s developers have retained their roles, with full salaries and benefits intact.

Although layoff fears loom due to ongoing negotiations between Microsoft and the union established in December 2024 concerning the studio’s future, the developers involved in Project Blackbird remain steadfast in their positions at ZeniMax Online. Thanks to the union’s organizing efforts, should layoffs occur in the future, affected developers will have the opportunity to leave the studio with dignity.

On July 2nd, Microsoft announced they were shelving an unannounced project at ZOS, a shock to over 200 of our devs working on the project. However, despite discussions regarding the status of our employment, the fact is: we have not yet been laid off. Our full statement can be found below.

— ZOS United-CWA (@zosunited.bsky.social) 2025-07-14T18:47:07.022Z

Wider Industry Impact

Project Blackbird’s cancellation is part of a larger trend at Microsoft, which recently confirmed the phase-out of several anticipated projects. Notably, the Perfect Dark reboot, initially announced in 2020, has halted development, leading to the closure of its studio, The Initiative. Furthermore, Rare’s Everwild has faced cancellation, while other studios such as Turn 10 have ominously downsized, shifting their focus to a support position for the Forza Motorsport series.

These developments reflect a growing caution within the gaming industry and highlight the challenges studios face in a shifting market. While ZeniMax Online has thus far avoided layoffs due to effective organization, the future remains uncertain for many in the industry as consolidation and restructuring continue.

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