The union says that its staff was blindsided by Microsoft's decision, and remains in the dark about its future.

Developers at ZeniMax Online Studios, best known for The Elder Scrolls Online, have spoken out after Microsoft abruptly cancelled a major MMO project, describing the experience as both disorienting and deeply disheartening. The game, internally codenamed Blackbird, was reportedly a sci-fi shooter in the style of Destiny, and had been in development by a team of over 200 people.

The cancellation came as part of Microsoft's plan to cut approximately 9,000 jobs across its gaming business, a move that impacted several teams under the Xbox Game Studios umbrella. ZeniMax Online Studios was among those hit, and the shutdown of Blackbird came without any warning to staff.

“On July 2nd, our lives were upended without prior notice or communication from Microsoft leadership,” said the ZeniMax Online Studios United-CWA (ZOSU-CWA) union in a statement posted on its Bluesky account, “and without clear understanding about the status of our employment.”

ZOSU-CWA outlines impact, bargaining efforts after project shutdown

In its statement, the union provided further details about the internal aftermath of the cancellation and the ongoing efforts to protect affected staff. It confirmed that 222 ZOSU-CWA members had been working on the unannounced MMO before Microsoft indefinitely shelved it. While discussions are ongoing, the union clarified: “Despite discussions regarding the status of our employment, the fact is: we have not yet been laid off.”

The group explained that both teams, the one behind The Elder Scrolls Online and the one developing Blackbird, had voted overwhelmingly to unionise in December 2024, forming ZeniMax Online Studios United-CWA. Since then, elected worker-volunteers have taken on bargaining duties with Microsoft.

Although layoffs are expected for some, all impacted developers remain employed for now with full pay and benefits. The union noted it acted swiftly after the cancellation to provide assistance and information to its members. “In light of this, our union came together with urgency, gathering and distributing information and resources to our affected members.”

ZOSU was also sharply critical of Microsoft's handling of the situation: “Where Microsoft has failed to support the talented craftspeople who have generated billions in revenue, our union has stepped up to provide clarity and support.”

The union stated that, due to their organising efforts, any future layoffs would be handled with care and respect: “We are able to ensure that those impacted will be able to depart with dignity.”

Union calls for broader protections across Microsoft studios

While the immediate focus remains on members affected by the cancellation, the union reaffirmed its commitment to support the rest of the studio. It said that it will continue advocating for developers still working on ESO, with the hope that other teams across Microsoft can benefit from similar protections.

“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,” the statement read.

ZOSU also expressed solidarity with ZeniMax Workers United (ZWU-CWA), a separate union representing QA staff, and said it looks forward to other units ratifying contracts that “will guarantee the rights we all deserve.”

As the future of affected staff remains uncertain, the union stressed that its work will continue, both in supporting those impacted by the cancellation, and in advocating for fairer conditions across the studio.