ZeniMax Online confirms there will be no layoffs following the cancellation of Project Blackbird

The affected staff will remain on payroll with full salary and benefits while the team's future is decided.

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The cancellation of Project Blackbird has been an unexpected blow to the 222 developers involved in the project within ZeniMax Online Studios, but at least it comes with reassuring news: there will be no immediate layoffs, according to an official statement from the ZOS United-CWA union published on Bluesky.

The studio, owned by Microsoft and responsible for The Elder Scrolls Online, had been working on this unannounced project, and its cancellation has been a surprise to both the staff and those tracking the studio’s progress. Unlike other teams affected by recent closures, all developers will retain their positions, salaries, and benefits while Microsoft and the union continue to negotiate the way forward after the game’s cancellation.

Project Blackbird Canceled, But the Team Remains On Board

According to the official statement, Project Blackbird was canceled in early July without any immediate layoffs. This contrasts with other studios like The Initiative (responsible for the Perfect Dark reboot), which was directly shut down, or Rare, whose Everwild project was also canceled. Even Turn 10 has been restructured and is now reportedly focused on supporting Forza Horizon instead of leading Forza Motorsport.

Although the union acknowledges that the team’s future remains uncertain and that departures may occur in the coming months, they have emphasized that thanks to union organization, any affected workers will be able to leave the studio with dignity, which marks a significant difference from other recent situations in the industry.

Microsoft’s stance – maintaining the ZeniMax Online team without immediate layoffs – has been well-received by the community, which is closely following the impact of internal adjustments at Xbox after the closure of multiple projects.