ZeniMax is just one of many game studios owned by Xbox Gaming that have recently suffered from poor profitability.layoffs.The layoffs, which occurred in early July and appear to have affected more than 9,000 employees, were motivated by Microsoft's desire to "increase flexibility and efficiency." However, employees at ZeniMax Media, the developer of The Elder Scrolls Online, recently spoke anonymously toGame Developersaid the layoffs were actually counterproductive.
One employee said: "Every employee who is leaving now has to pick up the pieces as best they can. Low morale and general confusion has spread into our workflow. We once had very reliable people doing things, but now they are no longer here."
The layoffs resulted in a significant brain drain, a loss of institutional knowledge and experience, and the studio's remaining employees were left to pick up the pieces on their own. One employee stressed that in some cases, remaining employees would need to take on the responsibilities of multiple laid-off employees.
Part of the reason for the huge impact on left-behind developers is the confusion over how layoffs are being handled. One employee said they were locked out of all company systems, including email and Slack, for hours before receiving any notification from managers or superiors. The chaotic management of the layoffs and their widespread impact severely dampened the morale of employees still at ZeniMax. "Morale is so low, it's just terrible," said one current ZeniMax employee named Autumn Mitchell. "Everyone is stressed out and crying." She continued, "I feel like we need to bring some people back. If we don't bring some people back, I don't know how we're going to get this done." This further suggests that the workload and expectations of employees who remain at ZeniMax are too heavy for those who stay, especially when quality standards need to be maintained.
Some people work here for 15 years and then suddenly leave. It’s disgusting that they have to rush out of Slack with colleagues who have worked with them on various projects for 15 years and have brought great rewards to the company. It's absolutely disgusting. If I could convey any message to any executive right now, it would be for them to take another look at this process because this is not normal and it is not good. —Autumn Mitchell, Senior QA Tester at ZeniMax Media.
Page Branson, another employee who still works at ZeniMax, said the day of the layoffs was "the worst day of my life at work." "It was so sad to see people so distraught and confused, not knowing if they were going to keep their jobs by the end of the day or even if the layoffs were actually done." She went on to say that the layoffs felt like "a huge betrayal of trust."
Employees who spoke to Game Developers estimated that as many as a third of ZeniMax employees were affected by the July layoffs. ZeniMax and Xbox Gaming are just the latest examples of a wave of layoffs sweeping the gaming and tech industries in recent years. The Video Game Layoff Tracker estimates that at least 3,563 people have been laid off (excluding the ZeniMax layoffs mentioned in this article).