In early July 2025, the bombshell dropped at Microsoft once again. Thousands of employees had to go, once more. Many employees at ZeniMax were also caught in this. Now, those affected are speaking about one of the worst days of their lives.
What exactly happened?
- On July 2, 2025, we reported that Microsoft officials announced that 9,100 employees would be laid off.
- Many employees at ZeniMax are also affected (The Elder Scrolls Online). It is unclear how many exactly. Currently, 2 unions are still negotiating with Microsoft about the layoffs.
- The new MMORPG, on which ZeniMax had been working for 7 years, has been canceled.
- ZeniMax chief Matt Firor is leaving the company – whether in protest against Microsoft’s actions or as an affected party is unclear.
- This is the fourth major round of layoffs at Xbox within 18 months and the second wave of layoffs in 2025.
In the wake of the first reports about the layoffs, it came to light that Microsoft officials may have acted questionably in this difficult situation. Xbox chief Phil Spencer gushed in his memo to employees, informing them about the planned savings, that Xbox could showcase “more players, games, and playtime than ever before.”
Additionally, employees were reportedly blocked early from the internal Slack channel and their email access, even before it was clear what was going on. According to affected reports, this was only clarified hours later.
Microsoft has been at a disadvantage to Sony for years when it comes to console sales:
A major, lasting damage for ZeniMax
What else are those affected reporting? A report from gamedeveloper.com now provides specific statements from various former and current employees of ZeniMax who comment on the events surrounding the recent wave of layoffs at Microsoft.
According to several anonymous sources, Microsoft’s communication policy on the day of the layoffs caused confusion and panic among almost all employees. No one knew where they stood. There was no verifiable information. At the same time, they were isolated from all official channels. One person explained that after the ordeal, they felt like they had been run over by a truck.
ZeniMax employee Page Branson recounts one of the worst days of her entire professional life. In her assessment, the layoffs have also significantly weakened ZeniMax, as many of those affected had been absolutely crucial to the success of Elder Scrolls Online and had been an integral part of the studio for up to 15 years.
What was lost that day in terms of experience and knowledge, Branson continues, is irreplaceable. Those who remain can only pick up the pieces. Negative impacts on the overall workflow have become immediately evident due to the loss of actually indispensable employees.
Autumn Mitchell, Senior QA Tester at ZeniMax Media, harshly criticizes the leadership:
This is not okay. This was not normal. I don’t care how often they do it to make it seem normal – it is not normal. The way they do it is inhumane. I don’t care how often they say it is dignified or that they want to do it respectfully – it is not.
Autumn Mitchell to gamedeveloper.com
By the way, the two union members are sure that the wave of layoffs would have been even more devastating without the support of organizations like the “Communications Workers of America” (CWA). Now, they fear that the streamlining will only lead to needing to take on even more tasks – to somehow cover for the missing employees.
The remaining employees are expected to somehow continue releasing award-winning games. I don’t really know how that is supposed to work. It looks like many people are switching between projects to take over the position of someone who was laid off – and they will probably take a good six months to figure out how to effectively fill this role.
Autumn Mitchell to gamedeveloper.com
Mitchell compares the current situation to looking at a graveyard: “The atmosphere is terrible. It is grotesque. People are stressed. They are crying. For many of us, these were some of our best friends. They are our housemates. In my case, it was my partner – my partner and I worked together and he was laid off. And I am not an isolated case.”
The responsible editor from Game Developer has requested a comment from Microsoft regarding the statements and criticism. So far without success. How little the officials can empathize with the situation of the affected is shown by this message: Microsoft lays off 9,000 employees – an Xbox executive advises the laid-off: AI can help during the tough times
