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Xbox layoffs spark labor charges against Microsoft
US and Canadian game worker unions have accused Microsoft of unfair labor practices after deep Xbox layoffs and studio cuts.
Image: Engadget
Microsoft is facing unfair labor practice charges in the US and Canada after another wave of cuts across its Xbox business.
Following the latest layoffs and studio upheaval, the Communications Workers of America filed charges against Microsoft with the National Labor Relations Board. According to the filing on the NLRB site, the union accuses Microsoft of bad faith bargaining, coercive actions, contract repudiation and failing to provide notice to employees. The US case was filed on July 15, while CWA Canada is also pursuing legal action, as first reported by Game Developer.
On July 6, Microsoft said it would immediately cut 1,600 jobs across the Xbox division, with plans to eliminate another 1,600 employees over the coming fiscal year. The layoffs affected Activision, Blizzard, King, Mojang, Xbox Game Studios and ZeniMax, including teams under Arkane, Bethesda, id Software, MachineGames and ZeniMax Online. Microsoft also sold off four Xbox studios — Compulsion Games, Double Fine, Ninja Theory and Undead Labs — and is reportedly considering shutting down Arkane. The company laid off another 3,200 people outside the Xbox division on the same day.
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The CWA says it represents hundreds of employees at Xbox studios in the US and Canada, and 3,500 workers across the video game industry. CWA Canada specifically represents Bethesda workers in Montreal. In a July 6 news release, the union said those workers had no advance warning.
“The Montreal workers, who work on highly successful game franchises like Fallout and The Elder Scrolls, among others, were shocked. They had no advance notice, no idea why or how they were targeted, and they worry about the negative impact on the games they work on.”
Union activity in games accelerated in late 2021, and Microsoft-owned studios have been among the most prominent organizing efforts in AAA development. Before the layoffs were announced, Xbox union members had publicly pushed Microsoft to negotiate transparently and in good faith, accusing the company of sidelining union proposals, mismanaging resources and delaying worker protections.
“We’re here to say this plainly: Those workers will not be treated as disposable.”
On Wednesday, Xbox employees at six studio locations in the US and Canada held a Save Our Devs rally to protest the layoffs. Union organizer and former Bethesda employee Simon Prefontaine told Game Developer that lawyers in both countries believe the layoffs were illegal and that the unions are seeking to return affected members to their jobs.
Culture Editor
Maya explores gaming, streaming, and the internet as a place where people actually live. From deep-dives into creator economies to the anthropology of digital communities, she tracks platform drama and cultural shifts so you don't have to. She believes the best tech stories are fundamentally about human behavior.
via Engadget
