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Game Developer
Xbox had laid off 379 Zenimax workers in Maryland
Microsoft's recent layoffs of 379 employees at ZeniMax in Maryland are part of a larger restructuring effort, which includes further workforce reductions across Xbox. The layoffs, effective September 4, 2026, have raised concerns about the future of ZeniMax's game development, particularly following the cancellation of the MMO Project Blackbird. Microsoft aims to shift its focus towards the future of its gaming franchises amidst these cuts.
MonitorConfidence: HighImmediate horizonReputational risk: High
Published 9 Jul 2026, 10:32 UTC2 min read
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Summary
TL;DR
- Microsoft laid off 379 ZeniMax workers as part of a restructuring effort.
- The layoffs affect ZeniMax Online Studios and ZeniMax Media in Maryland.
- The cuts are among 3,200 job reductions in the Xbox division.
- ZeniMax Online Studios previously attempted to unionize in 2024.
- Microsoft emphasizes commitment to The Elder Scrolls Online despite layoffs.
Interesting facts
- These layoffs are Microsoft's fifth major workforce reduction in three years.
- ZeniMax Online Studios previously lost talent after canceling Project Blackbird.
- The majority of laid-off workers were involved in the unionization efforts.