Elder Scrolls Online devs haven’t been laid off yet, but the studio is worried more Xbox layoffs are “inevitable” after their next MMO was scrapped

Microsoft recently carried out widespread layoffs, affecting Zenimax Online Studios among others. Alongside the termination of projects like Everwild, Perfect Dark, and others, the development of Project Blackbird, the upcoming MMO from The Elder Scrolls Online team, was unexpectedly shelved.

Regrettably, even with overwhelmingly favorable reviews from Xbox executives and playtesters, the MMO was closed down following seven years of dedicated work by ZOS’ team. A project initially hailed as a “sure thing” success met an unfortunate end.

Elder Scrolls Online devs on Project Blackbird

The union representing Zenimax Online Studios announced a response to recent layoffs and project cancellations, expressing that affected employees will have an opportunity to leave with respect and grace.

A few weeks ago, Microsoft postponed indefinitely a previously undisclosed MMORPG being developed at ZeniMax Online Studios. This unexpected decision affects the 222 developers working on the project, who are represented by the CWA union. They’ve expressed their appreciation for the attention and support they’ve received from the press and gamers who were eagerly awaiting the game’s release.

With the termination of the project, the team expressed that “a future has been stolen from several of us, and our community will not have the opportunity to enjoy a fantastic game.

It’s been confirmed that Zenimax Online Studios hasn’t experienced layoffs as of now, but they anticipate it to be unavoidable following the termination of Project Blackbird. Some employees have departed post-MMO cancellation, but there haven’t been any official redundancies within the studio yet.

During negotiations between Microsoft and ZOSU-CWA regarding our next steps after the project’s termination, the team working on the undisclosed project continues to be employees of ZeniMax Online Studios, receiving their full salary and benefits as usual, according to the developer.

The group acknowledged that there might be layoffs ahead for some of us. Yet, due to our efforts in organizing, we can guarantee a respectful exit for anyone affected.

The team clarified that Microsoft hasn’t adequately recognized or supported the skilled artisans whose work has brought in billions for the company. In this recent wave of layoffs, about 9,100 employees were let go, but over the last two years, even more have been dismissed.

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2025-07-16 13:11