Unionized Xbox employees are pushing back against the company’s looming layoffs and have outlined various demands.
Earlier today, the CWA (Communications Workers of America) held a press conference in which various unionized Xbox employees spoke out against Microsoft. The conference was held ahead of reported layoffs at Xbox, which insiders have stated will be a “bloodbath.”
It’s also a painful reminder of last year’s layoffs at Microsoft, where 9,000 people lost their jobs across the entire company (not just Xbox) and resulted in multiple projects being cancelled, including the long-awaited reboot of Perfect Dark. The studio behind that game, The Initative, was also shuttered without having ever released a game.
The upcoming layoffs reportedly puts more studios, such as Double Fine and Ninja Theory, at risk of closure. South of Midnight developer Complusion Games is also reportedly at risk of shutting down, despite winning a Peabody Award earlier this year. New Xbox boss Asha Sharma celebrated the win on her socials, months before the studio’s reported demise: “A well-deserved recognition for storytelling that truly matters!”
These developers are reportedly negotiating with Microsoft to find new owners or to go independent, but it remains to be seen what exactly will happen. Microsoft hasn’t explicitly confirmed layoffs or studio closures to the public, but Sharma did state in a memo that the company will be performing a “reset” in order to better situate the company for the future. As a result, Xbox developers are fearful of their future.
During the CWA press conference, speakers stated that they were growing frustrated as Microsoft hadn’t given all of the union reps time to bargain, with one CWA member stating that Microsoft had sat on a proposal for four months. One member did give credit to Microsoft after the World of Warcraft bargaining team at Blizzard saw “real gains” this past weekend.
The speakers also outlined what they want from Microsoft, including advance notice of layoffs, two years recall rights (the ability to be rehired if their position is reopened after layoffs), adequate severance, voluntary severance to avoid involuntary layoffs, and for Microsoft to transfer impacted staff to other studios or roles within the larger company. They’re also hoping to cement protections for all workers, not just those who are unionized.
A Microsoft spokesperson told IGN that it is working with the CWA to find an appropriate agreement. “We respect the right of our team members to make their voices heard,” said the spokesperson. “We have a long track record of good faith partnership with labor organizations, as demonstrated by the several finalized bargaining agreements our teams have reached with the CWA and our labor principles. We are continuing to negotiate in good faith with the CWA to reach agreements across XBOX.”
During the press conference, speakers said they felt “expendable” and “dispensable.”
“We refuse to be left in the dark as the company decides to restructure in a way that seriously affects us all,” said ZeniMax Online Studios senior encounter designer Morgan Goin. “We’re being treated as expendable, valued one week, and cut the next. Why would a game developer bother to put forward their best work under these conditions? Hard work and great games do not save you from layoffs under Microsoft. That’s why we’re coming together across Xbox to make our voices heard and to demand real accountability.”
Goin claimed that Microsoft’s own actions have created problems others are now paying for. Last week, Xbox announced yet another price hike on consoles, which has been sparked by a component crisis. Heavy investment into AI has led to massive price increases on RAM, which in turn has caused issues with producing affordable consoles, and Microsoft is a significant player in the AI space.
“Even as the company calls us too costly to keep, it is raising console prices on players again, citing a RAM shortage that Microsoft itself has exacerbated,” Goin continued. “Layoff rumors are swirling, players are paying more and executives are calling it a reset.”
Diablo senior environment artist Mahreen Fatima echoed this sentiment, pointing out that Microsoft’s investment in AI proves that the tech giant has plenty of money to go around. “Leadership points to revenue and margins to justify cutting us and then [last] week, raised console prices on players for the third time since 2025,” said Fatima. “They are not short on money. Look at the billions that they’re using to invest in AI. They’re just choosing not to protect us.”
Blizzard senior editor Alison Veneto stated that the lack of protections and looming layoffs make it harder for people to do their jobs, creating issues for those trying to make great games.
“My coworkers just want to focus on making amazing games for players,” said Veneto. “They do not want to spend every day worrying about whether another round of layoffs is coming. It drains away the energy we should be using to be creative. We want layoffs to be treated not as a quick fix to a quarterly balance sheet, but only as an absolute last resort. But if they’re truly unavoidable, we are asking Microsoft for common sense protections around layoffs and a real effort to lessen the burden on affected employees, not only for the workers at the bargaining table, but for everyone who will be affected by Xbox layoffs. Our game developers deserve that.”
It remains to be seen what will come of this, but Activision QA tester Andrew Snell and Fatima both made it clear that Microsoft’s actions don’t just impact workers, but also the players: “Workers and players are on the same side of this and we’re done paying for executives’ failures,” said Snell.
“We, the developers, demand that you respect our labor and our games,” added Fatima. “Together we’ve built a huge community and touched the lives of millions of gamers everywhere. Don’t disrespect the developers. Don’t disrespect the gamers.”
Cade Onder is a freelancer for IGN’s news team. He covers all things entertainment, including gaming, film, and more. You can find him on Twitter @Cade_Onder.
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