Microsoft's gaming division layoffs result in ZeniMax QA testers experiencing whiplash and deteriorated work morale, described as "rancid." Despite this, the union remains persistent in their struggles.
Microsoft's recent announcement of mass layoffs on July 2 has left a significant impact on numerous companies within the Xbox division, including ZeniMax Media. The news has been met with a negative mood and low morale, particularly among unionized workers, who are currently in a transitional phase.
The union, ZeniMax Workers United-CWA, ratified a contract with Microsoft in June after nearly two years of negotiations. However, the layoffs have put this agreement in limbo, as the unionized employees remain employed only temporarily while negotiations for severance packages are ongoing. The vast majority of these workers are expected to lose their jobs once formal layoffs proceed.
Roughly half of ZeniMax Media's workforce at its Rockville, Maryland location is being cut as part of a broader restructuring effort within the Xbox division. This includes reductions in ZeniMax Media’s marketing departments in both London and Rockville, and layoffs associated with the cancellation of ZeniMax Online Studios' flagship projects.
The union is actively negotiating severance packages on behalf of affected employees to mitigate the impact of these layoffs. Workers who lose their jobs will likely enter transition periods, potentially accessing outplacement services or unemployment benefits through union support.
Page Branson, a senior QA tester and part of the union's bargaining committee, expresses disappointment and concern about the layoffs. Branson emphasizes that organizing and unionizing is the best way for video game workers to protect themselves. Branson also encourages those who have not yet unionized (under Microsoft or other North American gaming companies) to sign up for United Videogame Workers-CWA.
The contract between ZeniMax Workers United-CWA and Microsoft includes provisions for guiding principles around outsourcing and AI usage. The union fought to ensure that Microsoft is not allowed to replace an internal job with an outsourced worker or an AI tool.
The CWA is still negotiating for a large number of unionized employees at ZeniMax Online Studios, whose roles are at risk after the team's project, codenamed Blackbird, was canceled. Many of these employees may still end up being laid off, but being in a union provides a layer of protection.
Despite the challenging circumstances, ZeniMax Workers United-CWA intends to continue fighting for the protection of video game workers. The Communication Workers of America (CWA) is providing support for laid-off workers and those still at ZeniMax who are affected by the layoffs.
Sources: [1] VentureBeat, "Microsoft's Xbox division layoffs affect ZeniMax, Rare, and more" (July 2, 2023) [2] GamesIndustry.biz, "ZeniMax Workers United-CWA on Microsoft Layoffs: 'We're in Transition'" (July 5, 2023) [3] Polygon, "Microsoft lays off 9,000 employees, affecting Xbox and LinkedIn divisions" (July 3, 2023)
- The recently ratified contract between ZeniMax Workers United-CWA and Microsoft, which was finalized in June after two years of negotiations, is now uncertain due to the announced layoffs.
- The Xbox division's mass layoffs, including those at ZeniMax Media, have left a significant portion of Microsoft's gaming workforce temporarily employed, awaiting negotiations for severance packages.
- The layoffs within ZeniMax Media's marketing departments in London and Rockville, and the cancellation of ZeniMax Online Studios' flagship projects, have resulted in roughly half of their workforce losing their jobs.
- The CWA is actively negotiating severance packages for affected employees and is prepared to offer support through outplacement services or unemployment benefits.
- Page Branson, a union representative and senior QA tester, encourages video game workers to unionize with United Videogame Workers-CWA to protect themselves in the face of industry layoffs and changes in technology.
