Microsoft's layoffs devastate ZeniMax union workers weeks after landmark contract
Microsoft's mass layoffs on 2 July 2025 have hit ZeniMax Workers United hard. The cuts came just weeks after the union secured a new contract with the company. Workers now face uncertainty, with morale plummeting across the studio.
ZeniMax Workers United-CWA formed in 2023 and ratified its first contract with Microsoft in June 2025. The deal included better pay, clearer rules on AI usage, and improved crediting for employees. It also set guidelines for converting contractors to full-time roles and limited outsourcing.
Despite these gains, Microsoft announced sweeping job cuts the following month. Over 300 workers were part of the union before the layoffs, with testers among those losing their jobs. Contractor wages had risen during negotiations, but the sudden reductions left many reeling. The mood inside ZeniMax has turned sour. Senior QA tester Page Branson called it one of the worst days she'd ever experienced at work. Anger and frustration have spread among staff, both for those let go and those left behind. The Communications Workers of America (CWA) is now offering support to affected employees, helping them navigate the fallout.
The layoffs have shaken ZeniMax's workforce, undoing some of the stability the union had fought to establish. The CWA continues to assist those impacted, but the future remains uncertain for many. Microsoft's decision has left a lasting mark on the studio's operations and employee morale.
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