ZeniMax QA testers face whiplash and "rancid" work morale following Microsoft's gaming layoffs — but the union still fights

Mere weeks ago, quality assurance testers at Microsoft-owned ZeniMax Media were celebrating.

ZeniMax Workers United-CWA was first formed back in 2023, and after almost two years and nearly going on strike, the union ratified a contract with Microsoft, securing better pay, a set of principles for how AI would be used, and more.

On Wednesday, July 2, Microsoft announced mass layoffs, with cuts across the Xbox division that encompasses numerous companies, including ZeniMax.

It's upended the lives of many testers at ZeniMax Workers United, who are feeling whiplash from how everything has unfolded. While the Communication Workers of America (CWA) isn't sharing exact numbers — over 300 workers were part of ZeniMax Workers United before the cuts — the team has been impacted, with Windows Central confirming that some testers were cut.

"The mood and the morale at work is rancid," says one employee. "People are very angry. People are frustrated. The vibes are off, to put it mildly."

Page Branson, a senior QA tester who works on The Elder Scrolls Online and as part of the union's bargaining committee, tells me that the layoffs have taken a toll on the remaining team.

"Emotionally, it was one of the worst working days I've ever had at any job I've ever been at, to see what was going in real time," she says.

"Studio-wide, we lost so many talented, wonderful workers for seemingly no reason. Every single person that got laid off was someone that I trusted to get the job done, and people that we absolutely needed. That's what makes this rough."

The CWA is doing what it can at the moment, providing support for workers who were laid off and those who are still at ZeniMax but are now feeling the loss of their team members.

"It is very reassuring that CWA is fighting for the people that got laid off in whatever ways they can," Branson adds.

Almost two years of fighting for a contract

ZeniMax Workers United-CWA bargained for almost two years before ratifying a contract with Microsoft in June. The contract, which is the first of its kind, is described by Branson as a "grassroots" effort, one that involved compromises on all sides.

"I think from where we started to where we ended up, we landed in a really good place, and it's a great jumping-off point for what happens after," she explains.

One of the main sticking points during negotiations was the nature of remote work, and whether or not testers could be allowed to work, adding that while the union accepted a hybrid work policy, it's something that the bargaining unit is keeping an eye on for future contracts.

Speaking before the layoffs, ZeniMax QA contractor Jessee Leese tells Windows Central that contractor wages were raised "very early on" during the bargaining process, with "significant jumps" for testers that were previously not paid enough to account for basic cost of living increases.

Historically, ZeniMax Media hires all testers on a contract basis, with skilled workers who do a good job theoretically being made more permanent offers. In practice, there was sometimes a lack of clarity around when or if it would happen. That's something this contract helps to clarify.

Now this contract provides guidelines, meaning management has to be clearer about exactly how long a contracted employee can expect to work for, as well as what the process for potentially being converted to full-time will look like.

Other hot-topic issues secured in the contract include guiding principles around outsourcing and the usage of AI systems. While the union isn't seeking to eliminate either from being used, the team fought to ensure that Microsoft is not allowed to replace an internal job with an outsourced worker or an AI tool.

The union also fought for better crediting policies, and ZeniMax Media is now responsible for holding an online record to ensure that anyone contributing to a game is properly credited.

"A lot of the challenges with our contract were due to the fact that we were writing things from scratch," Leese explains, adding that once issues were figured out, it made things easier for other gaming teams that are bargaining for their first contract.

Leese and others stayed in contact with organizers at other unionizing workers under Microsoft's gaming division, such as at Blizzard Albany and the World of Warcraft team.

All of this work was hard-fought, making the sudden impact of the layoffs even more devastating.

"You can't make good products and you can't make good art when you are terrified that you could lose your job at any moment," Branson says. "I want empathy from people right now to understand the human cost of a decision like this."

So, what happens now?

At the time I'm writing this, the CWA is still negotiating for a large number of unionized employees at ZeniMax Online Studios, whose roles are at risk after the team's project, codenamed Blackbird, was canceled mere months after Microsoft Gaming CEO Phil Spencer reportedly couldn't stop playing it.

Because these employees are also unionized but have not yet had a specific contract, they are keeping their jobs until the exact details of severance are agreed upon by Microsoft's lawyers and the CWA. Many of them may still end up being laid off, but it's a layer of protection that simply wouldn't be present if they hadn't unionized.

Being in a union isn't some silver bullet that will always shield against layoffs. But for Branson and the others I've spoken with, it's more necessary now than ever in order to have every bit of protection possible.

For those that have not yet unionized (under Microsoft or other North American gaming companies), they are encouraged to sign up for United Videogame Workers-CWA.

It's not clear what is next for ZeniMax Workers United-CWA, but the union isn't going to stop fighting.

"Organizing and unionizing is going to be the best way video game workers can protect themselves," Branson says. "They should do that as soon as possible."