Xbox Union Workers Stand Firm Against Layoff Rumors, Vow Not to Be Treated as Disposable Assets
Today, the Communications Workers of America (CWA) hosted a press conference featuring members from various Microsoft Xbox unions, addressing recent rumors of impending mass layoffs. Employees from multiple Xbox unions and studios voiced their concerns about the potential layoffs and the overall uncertain atmosphere within the company.
Frank Arce, vice president of CWA District 9, opened the conference by denouncing both past and potential layoffs, asserting that Microsoft workers “will not be treated as disposable.”
Several participants argued that the layoffs are unwarranted. Arce highlighted Xbox’s recent console price increases, stating, “The money is there; leadership is simply choosing where it goes and who pays.”
Sherveen Uduwana, a representative from United Video Game Workers, expressed solidarity with the group, noting that Microsoft CEO Satya Nadella earned $96.5 million last year. Mahreen Fatima, a senior environment artist on Diablo 4, pointed out Microsoft’s substantial investments in artificial intelligence over recent years, demanding evidence that the company is financially strained. “They’re just choosing not to protect us,” she said.
Microsoft Xbox has several unions across its game studios, many of which have formed since the company entered a “labor neutrality agreement” in 2022. Due to the staggered formation of these unions, some have already secured contracts that include layoff provisions, while others are still negotiating. Union members criticized management for delaying contract finalizations, especially regarding layoff protections. CWA members mentioned that the World of Warcraft union bargaining team had recently made progress with management on layoff protections, which they commended. However, Zenimax union members reported that Microsoft has not responded to their layoff protection proposal for months, and an Activision Publishing union member stated their bargaining group is awaiting responses on 20 proposals.
The unions emphasized the need for layoff protections for all employees, not just those who are unionized. They called for advanced notice of layoffs, two years of recall rights, and hiring freezes to allow current employees to explore new opportunities within Xbox. Andrew Snell, a QA tester at Activision Publishing, declared that Xbox unions would unite across their various teams to resist future layoffs. “We’re done paying for executives’ failures,” he stated.
While no layoffs have been officially confirmed yet, Xbox is anticipated to undergo significant restructuring, including major personnel cuts, following the end of its fiscal year tomorrow. Reports suggest that the company is preparing to close Compulsion Games, with similar shutdowns of Double Fine and Ninja Theory also on the horizon, although all three studios may have the chance to negotiate alternative exit strategies. Additionally, it was revealed that Craig Duncan, head of Xbox Game Studios, has resigned.
