"A future has been stolen": ZeniMax union says "lives were upended" by Xbox layoffs and MMO cancelation, but "we have not yet been laid off"

ZeniMax Online Studios United (ZOSU-CWA), a union formed by members of the Elder Scrolls Online development team and people who had been working on a now-canceled MMO in December, has issued a statement in response to the recent layoffs at Xbox.

For the uninitiated, an unannounced Destiny-style MMO codenamed Blackbird, which was in development at Elder Scrolls Online studio ZeniMax Online for seven years, was canceled as part of Microsoft's restructuring, and in the wake of the news longtime studio director Matt Firor resigned.

We've known that the layoffs hit Microsoft's gaming division particularly hard, but the full scope of the downsizing has yet to be revealed. Now, thanks to a statement from ZOSU-CWA (via IGN), we know the ZeniMax Online team has yet to be made redundant despite the cancelation of its unannounced MMO.

"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 the statement. "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."

Blackbird was reportedly an online looter shooter along the same lines as Destiny but with a lot more verticality and a Blade Runner-esque, sci-fi noir vibe. Xbox boss Phil Spencer reportedly had so much fun playing it he had to have the controller ripped from his hands. Nonetheless, it's been shelved indefinitely, with the team behind it seemingly in limbo until they get word from parent company Microsoft.

According to this statement from ZOSU, however, the writing's on the wall.

"While we understand that for most of us something like a layoff is inevitable, last December both the teams behind The Elder Scrolls Online (ESO) and the unannounced project voted overwhelmingly to form a union and establish ZeniMax Online Studios United-CWA (ZOSU-CWA)," the union says.

"Worker-volunteers elected to represent the interests of our union are currently bargaining with Microsoft for the benefit of our impacted teammates."

ZOSU says it's negotiating with Microsoft on "how we move forward following the project closure" and reaffirms that, for the time being, "the developers behind the unannounced project remain employees of ZeniMax Online Studios with full pay and benefits."

"On July 2nd, our lives were upended without prior notice or communication from Microsoft leadership and without clear understanding about the status of our employment. In light of this, our union came together with urgency, gathering and distributing information and resources to our affected members," ZOSU says.

The statement then takes direct aim at Microsoft, which it says "failed to support the talented craftspeople who have generated billions in revenue," leaving the union to step up and "provide clarity and support."

While ZOSU specifically has yet to reach an agreement on contract with Microsoft, ZeniMax Workers United, a sibling union representing ZeniMax QA workers, reached a tentative agreement in May.

Still, ZOSU acknowledges, "a layoff may be in the future for some of our members. However, as a result of our organizing, we are able to ensure that those impacted will be able to depart with dignity.

"More importantly, the work of ZOSU-CWA will continue so that our remaining teammates — the stalwart developers of ESO — can follow in the footsteps of our colleagues across other departments and studios at Microsoft, including our union siblings at ZeniMax Workers United (ZWU-CWA). We look forward to other units who will soon ratify fair contracts that will guarantee the rights we all deserve."

Microsoft's recent layoffs impacted over 9,000 workers, or around 4% of its total workforce, and in addition to the cancelation of ZeniMax Online's MMO, resulted in the cancelation of Rare's action-adventure game Everwild, the cancelation of Xbox's Perfect Dark reboot, the shuttering of studio The Initiative, and the reduction of Forza studio Turn 10's workforce by about 50%.

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