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ZeniMax Workers on Xbox Gaming Layoffs: 'Disgusting' and 'A Betrayal'

Cpt.Jank

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ZeniMax is just one of many game studios under the Xbox Gaming umbrella that has fallen victim to a recent round of layoffs in the name of profit. The layoffs, which occurred in early July and seemingly affected over 9,000 employees, according to The Verge, were motivated by Microsoft's desire to "increase agility and effectiveness." However, workers at ZeniMax Media, the game studio behind Elder Scrolls Online, have recently spoken anonymously to Game Developer and said that the layoffs have effectively had the opposite effect. One worker said "Everyone left now has to pick up the pieces as best they can. The morale and general confusion of it all has extended into our general workflow. We used to have very, very reliable people working on things, and they're no longer there." By all accounts, the layoffs have resulted in a severe brain drain and loss of institutional knowledge and experience, and the remaining workers at the studio have been left to pick up the pieces. One employee emphasized that, in some cases, the remaining staff will need to pick up the slack of multiple people who were laid off.

Part of the reason for the outsized effect on the remaining developers is just how chaotically the layoffs were handled, with one employee saying that they were locked out of all their company systems, including email and Slack, for hours before there was any communication from managers or higher-ups about what was going on. The chaotic management of the layoffs and their wide-reaching effects have severely diminished the morale of the workers who are still at ZeniMax, with one worker, Autumn Mitchell, who remains at ZeniMax, saying that "Morale is terrible. It's grotesque. People are stressed. They're crying." She continues to say "I also think we need to bring some people back. I don't see how we get through this work without bringing some people back," further implying that the workload and expectations placed on the workers still at ZeniMax are too much to handle for the remaining workers, especially if there is a standard of quality to be maintained.


"Some people were here for 15 years and cut out. Making it so that people have to rush to type a goodbye message into Slack to their colleagues that they've been working with on various projects, that have been making your corporation money for 15 years, is disgusting. It's disgusting. If I could get any message to any executive right now it would be review this process because it's not normal, and it's not okay" -Autumn Mitchell, ZeniMax Media senior QA tester.

Another worker still at ZeniMax, Page Branson, said that the day of the layoffs was "one of the worst days at a job I've ever had in my entire life," and that "It was so sad seeing people so distraught and confused and not knowing if they would have a job by the end of the day—or even if the layoffs were done by the end of the day." She continued that the layoffs felt like a "betrayal of trust of the highest magnitude."

Estimates from the staff who spoke to Game Developer say that as much as a third of the ZeniMax staff were affected by the July layoff round. ZeniMax and Xbox Gaming are also only the most recent example of a plague of layoffs that seems to be affecting the gaming and tech industries in the last few years, with the Video Game Layoffs Tracker estimating that at least 3,563 job cuts—excluding the ZeniMax layoffs mentioned here—have been confirmed.

View at TechPowerUp Main Site | Source
 
The whole thing was unsustainable and it’s the publishers themselves who essentially fucked over the entire industry. They over-hired during COVID expecting (without any rational reason) for the growth of that period to be long-term, then they doubled down on creating leaviathan-esque quadruple-A titles with monstrous budgets and now they are surprised (because they are idiots) when this model proved a failure and they have to cut costs, in the process fucking over people’s living. The whole thing would be comical if it wasn’t a tad sad, but it WAS predictable. We are at a point where AAA kind of NEEDS to crash and burn, unfortunately, for the industry to return to some semblance of health.
 
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The whole thing was unsustainable and it’s the publishers themselves who essentially fucked over the entire industry. They over-hired during COVID expecting (without any rational reason) for the growth of that period to be long-term, then they doubled down on creating leaviathan-esque quadruple-A titles with monstrous budgets and now they are surprised (because they are idiots) when this model proved a failure and they have to cut costs, in the process fucking over people’s living. The whole thing would be comical if it wasn’t a tad sad, but it WAS predictable. We are at a point where AAA kind of NEEDS to crash and burn, unfortunately, for the industry to return to some semblance of health. But, I suppose, now a lot of studious (not MS perhaps) will be hoping for Chinese cash to bail them out.

Maybe they wanted the layoffs as a plan to replace with AI. But what ever it is they can go find a short peer and take a long run on it.
 
yeah, this is actually a really dumb movie by M$, zenimax did well with elder scrolls online and it is profitable too if i am not mistaken. and their next mmo being space themed might have been a huge hit. people are kind of worn out of ffxiv and WoW, so a next gen mmo had the potential to be the next big thing. huge mistake M$
 
@Cpt.Jank You need might to check which ZeniMax you are talking about because you mixed info about them.
  • ZeniMax Online Studios LLC: developed TES Online. They're not and never have been "behind the Elder Scrolls series, DOOM, and Fallout games" even if they also did some work on Doom 2016 and Fallout 76.
  • ZeniMax Media Inc.: owned by Microsoft Gaming and parent company to ZeniMax Online Studios, Id Software (the actual studio behind the Doom series) and Bethesda Softworks which in turn is the parent company of which includes Bethesda Game Studios (the actual studio behind TES and Fallout 3 & 4) as a business unit.
Please fact-check.
 
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Microsoft has an woefully long history of buying up studios and firing the employees... I expected nothing less when news broke of them buying up all those studios a couple years ago. I'm wondering how long before they gut the Blizzard squad.
 
Those that weren't targeted by this particular layoff would be wise to prepare their resumes.
 
@Cpt.Jank You need might to check which ZeniMax you are talking about because you mixed info about them.
  • ZeniMax Online Studios LLC: developed TES Online. They're not and never have been "behind the Elder Scrolls series, DOOM, and Fallout games" even if they also did some work on Doom 2016 and Fallout 76.
  • ZeniMax Media Inc.: owned by Microsoft Gaming and parent company to ZeniMax Online Studios, Id Software (the actual studio behind the Doom series) and Bethesda Softworks which in turn is the parent company of Bethesda Game Studios (the actual studio behind TES and Fallout 3 & 4).
Please fact-check.
Thanks for the correction.
 
I wonder if big corps keep trying to go over the top trying to make AAAAA games with $$$$$ prices and flop, then give execs big wages and bonus only to fire the coders if eventually most games will be independent/indie games in the future?
 
Yep as usual with buyouts/mergers/acquisitions etc, its ALWAYS THE LITTLE PEOPLE who get f*cked the hardest, but as already stated, there were soooo many reasons for this crap to happen, it was just the DIPSHITS at the top who either didn't see it coming, or did and failed to plan or react to it. or just plain said "*F* it and let the chips roll...
 
Microsoft confirmed that it’s laying off as many as 9,100 employees, or about 4 percent of its workforce, in yet another round of cuts this year, reports The Seattle Times. Employees in Microsoft’s Xbox division, known as Microsoft Gaming, are being hit hard by these layoffs, although exact numbers and divisions are not yet known.
Quoted the original Verge article (written three weeks ago), if anyone was as confused as me.
 
Every time I try to get through the intro in ESO I remember quickly why I won't try it. It's incredibly boring and it doesn't play like any other TES game.
 
layoffs now in preparation for early end of year bonus checks for the upper management...or the CEO needs to buy a new roll of toilet paper.
 
1. Union.
2. Fired employees start your own company and make your own games (or whatever).
3. People freaking crying at there job...either relax and tell your boss they can F themselves and just work calm and collected within your means and matching your damn salary.
3.5 Or if that is not an option, find a different job.
 
1. Union.
2. Fired employees start your own company and make your own games (or whatever).
3. People freaking crying at there job...either relax and tell your boss they can F themselves and just work calm and collected within your means and matching your damn salary.
3.5 Or if that is not an option, find a different job.
1 - LOL!
2 - With what money? Videogames, especially AA+ titles aren't cheap to produce and the lower you go the more it'll be a hit/miss.
3 - And go find a new job among thousands of freshly layed off people? WTF?!?
 
It wasnt just xbox / game studios that had layoffs.

Microsoft laid off 1000s of people from all divisions throughout the whole company.

This is just a story because it hit game studios.
 
Thanks for the correction.

Missed one:
workers at ZeniMax Media, the game studio behind Elder Scrolls Online
ZeniMax Media is a holding company, not a game studio.
ZeniMax Online Studios, the actual game studio, is a subsidiary of ZeniMax Media.

From the top the corporate structure is like this:
  • Microsoft
    • Microsoft Gaming [1]
      • ZeniMax Media
        • Arkane Studios [2]
        • Bethesda Softworks
          • Bethesda Game Studios [1][2]
        • id Software [2]
        • MachineGames [2]
        • ZeniMax Online Studios [2]
          • ZeniMax Online Studios Hungary [1][2]
Entries marked [1] are not separate companies but divisions of their respective companies.
Entries marked [2] are game studios.

I mistakenly said before Bethesda Game Studios was a subsidiary of Bethesda Softworks. It isn't. BGS is just a business unit (division) within BS.
Bethesda Softworks is a publisher in charge of all ZeniMax subsidiary game studios and also publishes games from studios unrelated to ZeniMax, like Nightdive Studios (System Shock 2 Remaster) which is owned by Atari and Tango Gameworks (Hi-Fi Rush) which was previously owned by ZeniMax Media but is currently a subsidiary of Krafton.

In other words: ZeniMax Media involvement in gaming is limited to owning a bunch of companies that either make them or publish them.

Hope this helps. :)
 
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These layoffs are usually run by the bean counters who look for redundant titles with the highest salaries and lay them off with little regard to the quality of their work or their actual importance on any ongoing projects for "streamlining" and "cost savings" purposes.

It would be one thing if the folks with the lowest performance ratings were culled or something, but my experience with any major corpo is these types of layoffs always leave tons of confusion in their wake because the people making the firing decision are far removed from the people actually working.

Good workers that are critical for certain projects get fired, tons of reorg and confusion usually follow, timelines get thrown in the dumpster, etc.
 
These layoffs are usually run by the bean counters who look for redundant titles with the highest salaries and lay them off with little regard to the quality of their work or their actual importance on any ongoing projects for "streamlining" and "cost savings" purposes.
Exactly this. It's moronic, self defeating and ultimately costs more in the long run than any upfront savings would present.
 
should have made more noise to stop the MS acquisition, what were they expecting?
They should have gone on strike then not now (MS would probably back out), instead they made an agreement with Zenimax/MS. Not sure they aren't also to blame, if not for anything else, for being so naive.
 
should have made more noise to stop the MS acquisition, what were they expecting?
They should have gone on strike then not now (MS would probably back out), instead they made an agreement with Zenimax/MS. Not sure they aren't also to blame, if not for anything else, for being so naive.
Hind-sight being 20/20 and all..
 
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