Despite the recent cancellation of their ambitious unannounced MMO project, developers at ZeniMax Online Studios have not yet been laid off. While the project’s end has caused significant disruption, especially to the team that had been building it for years, all employees remain on the payroll as of mid-July.

The game, codenamed “Blackbird,” was quietly in development since at least 2018. According to reports, it was intended to be a sci-fi looter-shooter with persistent online elements, described by sources familiar with the project as ZeniMax’s most ambitious title since The Elder Scrolls Online. Yet despite having strong internal support including from Xbox boss Phil Spencer it was cancelled earlier this month amid widespread restructuring at Microsoft.

In the wake of this cancellation, many assumed that layoffs would be immediate. However, ZeniMax’s recently formed union, ZOSU-CWA, has confirmed that no employees have been let go at least not yet. A statement from the union reads: “Despite discussions regarding the status of our employment, the fact is: we have not yet been laid off.”

This development is significant in light of the mass layoffs affecting other Microsoft-owned studios this year. The union emphasized that its ongoing negotiations with Microsoft have helped preserve jobs temporarily and ensure fair severance arrangements for affected workers. While the union admits layoffs are likely forthcoming, it is pushing to ensure those departures happen with “dignity, clarity, and support.”

Sources close to the studio say morale is understandably shaken. One anonymous developer said, “There’s a lot of sadness and frustration. We spent years building something we believed in. But for now, we’re still here. We’re still showing up.”

Industry analyst Rachel Griffin believes the union’s presence has delayed what otherwise might have been immediate cuts. “This is exactly what a union is for,” she says. “It’s not about preventing all bad outcomes but making sure that when things do go wrong, people aren’t left in the cold without support.”

There’s no confirmed date for when layoffs might occur, but insiders say most of the Blackbird team expects to receive notice in the coming weeks. Meanwhile, some are being reassigned to The Elder Scrolls Online, ZeniMax’s live-service MMO that continues to receive regular updates and expansions.

If nothing else, the situation illustrates the growing power of organized labour in the gaming industry. As developers across the country face mounting pressure from cancellations, cutbacks, and closures, more workers are turning to unions for representation and leverage.

For the team at ZeniMax Online, the future remains uncertain but they’re not facing it alone.