Microsoft eliminated an initial wave of 1,600 jobs across its Xbox division, including hundreds of union video game workers represented by the Communications Workers of America (CWA).
“When Microsoft sought to grow its video game division, corporate executives made an agreement with video game workers and their union, CWA, to respect their right to organize for a new day for workers across Microsoft’s video game studios,” said Claude Cummings Jr., President of CWA, in a statement. “Although our union signed neutrality agreements with Microsoft, we have been extremely disappointed by a company that has slow-walked our members at the bargaining table, making CWA members wait for the protections of a union contract.”
Cummings Jr. added, “But make no mistake – whether our members have a contract in hand, or are still at the bargaining table, CWA members at Xbox have the power and protection of union membership. When Microsoft decides to treat the workers who built Xbox as expendable, it should know who they’re dealing with. This is not just a fight with the thousands of workers across Xbox; it’s a fight with each and every member at CWA — hundreds of thousands of people strong.”
“As Microsoft restructures, the workers powering its biggest franchises deserve protection, not to be treated like disposable line items,” said Derrick Osobase, Vice President, CWA District 6, in a statement. “It is our CWA members who make the games that make Xbox valuable. Today’s layoffs decimated the teams at id Software, Bethesda Game Studios, and ZeniMax Online Studios, legendary studios whose employees brought us games like Doom, Quake, Elder Scrolls, and Fallout. The layoffs that occurred this week will lower the quality of these iconic games and make them less fun to play with longer delays in releases, ultimately just hurting the players and driving down revenue for Microsoft.”
“Our union will take all necessary legal and contractual action to defend our members and their rights,” said Mike Davis, Vice President, CWA District 2-13, in a statement. “We will demand immediate bargaining – over fair severance, over vendor-contract decisions, over internal placement so that qualified employees can move into open roles, and over recall rights. That’s the difference a union makes. Organized workers have a seat at the table on the decisions that affect their lives and families, and that includes layoffs. Workers without a union are left to accept whatever cards they are dealt by management for any given decision.”
“These workers put their hearts and souls into creating best selling video games people around the world loved,” said Carmel Smyth, President of CWA Canada, in a statement. “We hope their talent and dedication to excellence is recognized and respected by one of the world’s richest employers.”
Across Microsoft’s Xbox division, more than 3,500 workers have chosen to form unions with CWA since 2022, following Microsoft’s agreement to a neutrality framework that allowed workers to make that choice freely, without fear of retaliation or coercion. Xbox’s best-selling games can now boast union-represented labor, including household video games like The Elder Scrolls, Diablo and Overwatch.