„Layoffs may be inevitable” ZeniMax Online Studios workers union shares statement about canceled MMORPG

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Today, the union at ZeniMax Online Studios, known as ZOSU (ZeniMax Online Studios United), which is affiliated with the Communication Workers of America, has spoken out about the recent mass layoffs at Microsoft impacting over 9,000 employees, including many from Xbox. Formed in December, this union is currently in negotiations with Microsoft for a contract, although an agreement has not been reached yet. The union reports that, so far, the studio has not been affected by layoffs, but the situation may change in the future.

ZeniMax Online Studios United union shares a statement following catastrophic layoffs and game cancelations

At the start of this month, I learned that Microsoft and Xbox announced a massive round of layoffs across the company. This unfortunate decision affected countless game developers, leading to studio closures and even the cancellation of games in progress. One of the projects hit hardest was the remake of Perfect Dark, which is no longer being developed, and The Initiative – the studio created for this project – has been shut down. Rare, known for Sea of Thieves and classics like Banjo-Kazooie, had their upcoming game Everwild canceled as well. Teams behind popular games like Forza Motorsport reportedly lost approximately half their workforce to these layoffs, and that’s just scratching the surface of the bigger stories.

ZeniMax Online Studios (ZOSU) is primarily recognized for creating Elder Scrolls Online. It’s worth noting that they had been secretly developing another MMORPG, which unfortunately has been terminated. As per ZOSU, about 222 team members were engaged in this unannounced project. With the announcement made on July 2nd, these employees now find themselves uncertain about their future. In response to this development, ZOSU stated, “Indeed, a promising future has been taken away from many of us, and our community will miss out on an exceptional game. Nevertheless, at this point, it’s essential to clarify that we have not yet been dismissed from our positions.” This situation might be connected to the team deciding to form a union.

However, while things might not be entirely smooth ahead, as ZOSU acknowledges that “…many of us may face layoffs…” they also assure that “…through our efforts, those affected will have a chance to leave with respect and dignity.” Simultaneously, numerous workers at multiple Xbox studios received layoff notices around the same period. Yet, at ZeniMax Online Studios, there seems to be some buffer against the sudden jolt.

It’s heartening to see such stories, as they may inspire more game studios to band together in unions. In this uncertain era of video game creation, with countless workers discovering job loss overnight, unity can offer significant protection. Interestingly, even established studios like those behind World of Warcraft and Overwatch 2 have started forming unions lately.

Unions can serve as a vital resource for workers, as ZOSU emphasizes in its statement: “Where corporations like Microsoft have neglected to assist the skilled workers who have contributed significantly to their profits, our union takes action to bring clarity and aid.” It’s high time for employees to stop relying solely on the benevolence of corporate leaders. Although layoffs may be unavoidable, a union can at least offer clarity and support when companies like Microsoft provide only uncertainty and disorder.

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2025-07-15 00:02