diff --git a/packages/playwright-test/src/reporters/blob.ts b/packages/playwright-test/src/reporters/blob.ts
index c911e96c6b..8269a93695 100644
--- a/packages/playwright-test/src/reporters/blob.ts
+++ b/packages/playwright-test/src/reporters/blob.ts
@@ -14,12 +14,10 @@
  * limitations under the License.
  */
 
-import type { EventEmitter } from 'events';
 import fs from 'fs';
 import path from 'path';
-import { ManualPromise, calculateSha1 } from 'playwright-core/lib/utils';
+import { calculateSha1, createGuid } from 'playwright-core/lib/utils';
 import { mime } from 'playwright-core/lib/utilsBundle';
-import { yazl } from 'playwright-core/lib/zipBundle';
 import { Readable } from 'stream';
 import type { FullConfig, FullResult, TestResult } from '../../types/testReporter';
 import type { Suite } from '../common/test';
@@ -34,9 +32,10 @@ type BlobReporterOptions = {
 export class BlobReporter extends TeleReporterEmitter {
   private _messages: any[] = [];
   private _options: BlobReporterOptions;
+  private _copyFilePromises = new Set<Promise<void>>();
 
-  private readonly _zipFile = new yazl.ZipFile();
-  private readonly _zipFinishPromise = new ManualPromise<undefined>();
+  private _outputDir!: string;
+  private _reportFile!: string;
 
   constructor(options: BlobReporterOptions) {
     super(message => this._messages.push(message));
@@ -44,17 +43,21 @@ export class BlobReporter extends TeleReporterEmitter {
   }
 
   override onBegin(config: FullConfig<{}, {}>, suite: Suite): void {
+    this._outputDir = path.resolve(this._options.configDir, this._options.outputDir || 'blob-report');
+    fs.mkdirSync(path.join(this._outputDir, 'resources'), { recursive: true });
+    this._reportFile = this._computeOutputFileName(config);
     super.onBegin(config, suite);
-    this._initializeZipFile(config);
   }
 
   override async onEnd(result: FullResult): Promise<void> {
     await super.onEnd(result);
     const lines = this._messages.map(m => JSON.stringify(m) + '\n');
     const content = Readable.from(lines);
-    this._zipFile.addReadStream(content, 'report.jsonl');
-    this._zipFile.end();
-    await this._zipFinishPromise;
+    await Promise.all([
+      ...this._copyFilePromises,
+      // Requires Node v14.18.0+
+      fs.promises.writeFile(this._reportFile, content as any).catch(e => console.error(`Failed to write report ${this._reportFile}: ${e}`))
+    ]);
   }
 
   override _serializeAttachments(attachments: TestResult['attachments']): TestResult['attachments'] {
@@ -64,7 +67,7 @@ export class BlobReporter extends TeleReporterEmitter {
       const sha1 = calculateSha1(attachment.path);
       const extension = mime.getExtension(attachment.contentType) || 'dat';
       const newPath = `resources/${sha1}.${extension}`;
-      this._zipFile.addFile(attachment.path, newPath);
+      this._startCopyingFile(attachment.path, path.join(this._outputDir, newPath));
       return {
         ...attachment,
         path: newPath,
@@ -72,22 +75,19 @@ export class BlobReporter extends TeleReporterEmitter {
     });
   }
 
-  private _initializeZipFile(config: FullConfig) {
-    (this._zipFile as any as EventEmitter).on('error', error => this._zipFinishPromise.reject(error));
-    const zipFileName = this._computeOutputFileName(config);
-    fs.mkdirSync(path.dirname(zipFileName), { recursive: true });
-    this._zipFile.outputStream.pipe(fs.createWriteStream(zipFileName)).on('close', () => {
-      this._zipFinishPromise.resolve(undefined);
-    });
-  }
-
   private _computeOutputFileName(config: FullConfig) {
-    const outputDir = path.resolve(this._options.configDir, this._options.outputDir || '');
     let shardSuffix = '';
     if (config.shard) {
       const paddedNumber = `${config.shard.current}`.padStart(`${config.shard.total}`.length, '0');
-      shardSuffix = `-${paddedNumber}-of-${config.shard.total}`;
+      shardSuffix = `${paddedNumber}-of-${config.shard.total}-`;
     }
-    return path.join(outputDir, `report${shardSuffix}.zip`);
+    return path.join(this._outputDir, `report-${shardSuffix}${createGuid()}.jsonl`);
+  }
+
+  private _startCopyingFile(from: string, to: string) {
+    const copyPromise: Promise<void> = fs.promises.copyFile(from, to)
+        .catch(e => { console.error(`Failed to copy file from "${from}" to "${to}": ${e}`); })
+        .then(() => { this._copyFilePromises.delete(copyPromise); });
+    this._copyFilePromises.add(copyPromise);
   }
 }
diff --git a/packages/playwright-test/src/reporters/merge.ts b/packages/playwright-test/src/reporters/merge.ts
index a6da6a7c98..56c1d256bf 100644
--- a/packages/playwright-test/src/reporters/merge.ts
+++ b/packages/playwright-test/src/reporters/merge.ts
@@ -15,9 +15,7 @@
  */
 
 import fs from 'fs';
-import os from 'os';
 import path from 'path';
-import { ZipFile, removeFolders } from 'playwright-core/lib/utils';
 import type { ReporterDescription } from '../../types/test';
 import type { FullResult } from '../../types/testReporter';
 import type { FullConfigInternal } from '../common/config';
@@ -27,39 +25,13 @@ import { Multiplexer } from './multiplexer';
 
 export async function createMergedReport(config: FullConfigInternal, dir: string, reporterDescriptions: ReporterDescription[]) {
   const shardFiles = await sortedShardFiles(dir);
-  const resourceDir = await fs.promises.mkdtemp(path.join(os.tmpdir(), 'playwright-report-'));
-  await fs.promises.mkdir(resourceDir, { recursive: true });
-  try {
-    const shardReports = await extractReports(dir, shardFiles, resourceDir);
-    const events = mergeEvents(shardReports);
-    patchAttachmentPaths(events, resourceDir);
+  const events = await mergeEvents(dir, shardFiles);
+  patchAttachmentPaths(events, dir);
 
-    const reporters = await createReporters(config, 'merge', reporterDescriptions);
-    const receiver = new TeleReporterReceiver(path.sep, new Multiplexer(reporters));
-    for (const event of events)
-      await receiver.dispatch(event);
-  } finally {
-    await removeFolders([resourceDir]);
-  }
-}
-
-async function extractReports(dir: string, shardFiles: string[], resourceDir: string): Promise<string[]> {
-  const reports = [];
-  for (const file of shardFiles) {
-    const zipFile = new ZipFile(path.join(dir, file));
-    const entryNames = await zipFile.entries();
-    for (const entryName of entryNames) {
-      const content = await zipFile.read(entryName);
-      if (entryName.endsWith('report.jsonl')) {
-        reports.push(content.toString());
-      } else {
-        const fileName = path.join(resourceDir, entryName);
-        await fs.promises.mkdir(path.dirname(fileName), { recursive: true });
-        await fs.promises.writeFile(fileName, content);
-      }
-    }
-  }
-  return reports;
+  const reporters = await createReporters(config, 'merge', reporterDescriptions);
+  const receiver = new TeleReporterReceiver(path.sep, new Multiplexer(reporters));
+  for (const event of events)
+    await receiver.dispatch(event);
 }
 
 function patchAttachmentPaths(events: JsonEvent[], resourceDir: string) {
@@ -79,11 +51,12 @@ function parseEvents(reportJsonl: string): JsonEvent[] {
   return reportJsonl.toString().split('\n').filter(line => line.length).map(line => JSON.parse(line)) as JsonEvent[];
 }
 
-function mergeEvents(shardReports: string[]) {
+async function mergeEvents(dir: string, shardReportFiles: string[]) {
   const events: JsonEvent[] = [];
   const beginEvents: JsonEvent[] = [];
   const endEvents: JsonEvent[] = [];
-  for (const reportJsonl of shardReports) {
+  for (const reportFile of shardReportFiles) {
+    const reportJsonl = await fs.promises.readFile(path.join(dir, reportFile), 'utf8');
     const parsedEvents = parseEvents(reportJsonl);
     for (const event of parsedEvents) {
       if (event.method === 'onBegin')
@@ -160,5 +133,5 @@ function mergeEndEvents(endEvents: JsonEvent[]): JsonEvent {
 
 async function sortedShardFiles(dir: string) {
   const files = await fs.promises.readdir(dir);
-  return files.filter(file => file.endsWith('.zip')).sort();
+  return files.filter(file => file.endsWith('.jsonl')).sort();
 }
diff --git a/tests/playwright-test/reporter-blob.spec.ts b/tests/playwright-test/reporter-blob.spec.ts
index 750614f133..2a473e52a1 100644
--- a/tests/playwright-test/reporter-blob.spec.ts
+++ b/tests/playwright-test/reporter-blob.spec.ts
@@ -91,7 +91,7 @@ class EchoReporter {
 module.exports = EchoReporter;
 `;
 
-test('should call methods in right order', async ({ runInlineTest, mergeReports, showReport, page }) => {
+test('should call methods in right order', async ({ runInlineTest, mergeReports }) => {
   test.slow();
   const reportDir = test.info().outputPath('blob-report');
   const files = {
@@ -140,7 +140,7 @@ test('should call methods in right order', async ({ runInlineTest, mergeReports,
   await runInlineTest(files, { shard: `3/3` });
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-3.zip', 'report-3-of-3.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-3.*.jsonl/), expect.stringMatching(/report-3-of-3.*.jsonl/), 'resources']);
   const { exitCode, output } = await mergeReports(reportDir, {}, { additionalArgs: ['--reporter', test.info().outputPath('echo-reporter.js')] });
   expect(exitCode).toBe(0);
   const lines = output.split('\n').filter(l => l.trim().length);
@@ -205,7 +205,7 @@ test('should merge into html', async ({ runInlineTest, mergeReports, showReport,
     await runInlineTest(files, { shard: `${i + 1}/${totalShards}` });
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-3.zip', 'report-2-of-3.zip', 'report-3-of-3.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-3.*.jsonl/), expect.stringMatching(/report-2-of-3.*.jsonl/), expect.stringMatching(/report-3-of-3.*.jsonl/), 'resources']);
   const { exitCode, output } = await mergeReports(reportDir, { 'PW_TEST_HTML_REPORT_OPEN': 'never' }, { additionalArgs: ['--reporter', 'html'] });
   expect(exitCode).toBe(0);
 
@@ -266,7 +266,7 @@ test('be able to merge incomplete shards', async ({ runInlineTest, mergeReports,
 
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-3.zip', 'report-3-of-3.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-3.*.jsonl/), expect.stringMatching(/report-3-of-3.*.jsonl/), 'resources']);
   const { exitCode } = await mergeReports(reportDir, { 'PW_TEST_HTML_REPORT_OPEN': 'never' }, { additionalArgs: ['--reporter', 'html'] });
   expect(exitCode).toBe(0);
 
@@ -328,7 +328,7 @@ test('merge into list report by default', async ({ runInlineTest, mergeReports }
     await runInlineTest(files, { shard: `${i + 1}/${totalShards}` });
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-3.zip', 'report-2-of-3.zip', 'report-3-of-3.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-3.*.jsonl/), expect.stringMatching(/report-2-of-3.*.jsonl/), expect.stringMatching(/report-3-of-3.*.jsonl/), 'resources']);
   const { exitCode, output } = await mergeReports(reportDir, { PW_TEST_DEBUG_REPORTERS: '1', PW_TEST_DEBUG_REPORTERS_PRINT_STEPS: '1', PWTEST_TTY_WIDTH: '80' }, { additionalArgs: ['--reporter', 'list'] });
   expect(exitCode).toBe(0);
 
@@ -400,7 +400,7 @@ test('preserve attachments', async ({ runInlineTest, mergeReports, showReport, p
 
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-2.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-2.*.jsonl/), 'resources']);
   const { exitCode } = await mergeReports(reportDir, { 'PW_TEST_HTML_REPORT_OPEN': 'never' }, { additionalArgs: ['--reporter', 'html'] });
   expect(exitCode).toBe(0);
 
@@ -454,7 +454,7 @@ test('multiple output reports', async ({ runInlineTest, mergeReports, showReport
 
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-2.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-2.*.jsonl/), 'resources']);
   const { exitCode, output } = await mergeReports(reportDir, { 'PW_TEST_HTML_REPORT_OPEN': 'never', 'PW_TEST_DEBUG_REPORTERS': '1' }, { additionalArgs: ['--reporter', 'html,line'] });
   expect(exitCode).toBe(0);
 
@@ -516,7 +516,7 @@ test('multiple output reports based on config', async ({ runInlineTest, mergeRep
 
   const reportFiles = await fs.promises.readdir(reportDir);
   reportFiles.sort();
-  expect(reportFiles).toEqual(['report-1-of-2.zip', 'report-2-of-2.zip']);
+  expect(reportFiles).toEqual([expect.stringMatching(/report-1-of-2.*.jsonl/), expect.stringMatching(/report-2-of-2.*.jsonl/), 'resources']);
   const { exitCode, output } = await mergeReports(reportDir, { 'PW_TEST_DEBUG_REPORTERS': '1' }, { additionalArgs: ['--config', test.info().outputPath('merged/playwright.config.ts')] });
   expect(exitCode).toBe(0);
 
@@ -530,8 +530,8 @@ test('multiple output reports based on config', async ({ runInlineTest, mergeRep
   expect((await fs.promises.stat(test.info().outputPath('merged/html/index.html'))).isFile).toBeTruthy();
 
   // Check report presence.
-  expect((await fs.promises.stat(test.info().outputPath('merged/merged-blob/report.zip'))).isFile).toBeTruthy();
-
+  const mergedBlobReportFiles = await fs.promises.readdir(test.info().outputPath('merged/merged-blob'));
+  expect(mergedBlobReportFiles).toEqual([expect.stringMatching(/report.*.jsonl/), 'resources']);
 });
 
 test('onError in the report', async ({ runInlineTest, mergeReports, showReport, page }) => {