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ZeniMax Online Union Bargains With Microsoft After Project Blackbird Cancellation

Union negotiators have secured full pay and benefits for 222 developers as talks move to define their long-term employment status.

Phil Spencer, chief executive officer of gaming at Microsoft Corp., arrives to court in San Francisco, California, US, on Tuesday, June 27, 2023. Microsoft and Activision Blizzard CEOs are expected to testify to persuade a federal judge in California to reject the Federal Trade Commission's effort to block their $69 billion deal. Photographer: Shelby Knowles/Bloomberg via Getty Images
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Overview

  • Microsoft’s July 2 gaming division restructuring cut over 9,000 jobs and indefinitely shelved Project Blackbird at ZeniMax Online Studios.
  • No ZeniMax Online Studios developer has been laid off since the cancellation, keeping the 222-member Blackbird team on payroll.
  • ZeniMax Online Studios United-CWA, formed in December 2024, began formal bargaining this week to clarify members’ future roles.
  • Union leaders are pushing for clear protocols on potential layoffs and negotiated exit packages to safeguard displaced staff.
  • Other major Xbox Game Studios projects, including Rare’s Everwild and the Perfect Dark reboot, were also canceled amid broader cuts.