In a recent statement shared on Bluesky, ZeniMax Online Studios (ZOS) confirmed that no developers were laid off after the abrupt cancellation of Project Blackbird. This decision came as a shock to the 222 developers working on the ambitious project, leaving many stunned. 
The union, ZOS United-CWA, expressed gratitude for the media and players who were eager to see the game come to life, acknowledging the disappointment felt across the board.
Unlike other studios where layoffs followed similar project cancellations, ZeniMax Online has committed to keeping its developers on staff, ensuring full pay and benefits for those affected. While the future remains uncertain, especially with ongoing discussions between Microsoft and the union formed in December 2024, the developers who worked on Project Blackbird remain employed with the company for now. However, the possibility of future layoffs looms, though the union’s efforts will help ensure that, if layoffs do occur, those impacted can leave the company with dignity and respect.
Project Blackbird isn’t the only casualty of recent changes within Microsoft’s gaming division. Earlier this month, the highly anticipated Perfect Dark reboot, first announced in 2020, was officially canceled, and the development studio, The Initiative, was shut down. Rare’s Everwild has also been scrapped, and other studios, including Turn 10 (the team behind the Forza Motorsport series), have seen significant downsizing, with rumors suggesting that Turn 10 has shifted its focus to supporting Forza Horizon.
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So much for job security… Microsoft pulling the plug on everything!! 😒