Unionized Xbox employees have spoken out against Microsoft’s reported plans for another wave of layoffs, pledging to fight for stronger worker protections as uncertainty grows across the company’s gaming division. The statements come after reports suggested Microsoft could announce significant job cuts and potentially close multiple Xbox Game Studios as part of an ongoing restructuring.
According to earlier reporting from Bloomberg, Xbox CEO Asha Sharma recently confirmed that Microsoft is “resetting” its gaming business. Reports have identified Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs as studios potentially affected, although Microsoft has not officially confirmed any closures.
Xbox workers call for stronger protections
According to Kotaku, during a press conference organized by the Communications Workers of America (CWA), union leaders and employees criticized the reported restructuring plans and argued that Microsoft’s financial position does not justify widespread layoffs.
CWA District 9 Vice President Frank Arce said Xbox employees “will not be treated as disposable,” while also pointing to Microsoft’s recent hardware price increases.
“The money is there, leadership is simply choosing where it goes and who pays.”
Representatives also called for broader layoff protections covering all Xbox employees, including advance notice before layoffs, extended recall rights, and temporary hiring freezes.
Several speakers argued that Microsoft has the resources to avoid significant workforce reductions. United Video Game Workers representative Sherveen Uduwana highlighted CEO Satya Nadella’s reported compensation package, while Mahreen Fatima questioned the company’s investment priorities.
Fatima noted Microsoft’s multibillion-dollar investment in artificial intelligence and argued the company should demonstrate that layoffs are financially necessary before reducing staff.
QA tester Andrew Snell added that Xbox employees are “done paying for executives’ failures,” emphasizing that unions intend to continue resisting future layoffs.
The discussion comes as unionization has expanded across Microsoft’s gaming studios. In 2024, Bethesda Game Studios became Microsoft’s first fully unionized game development studio under the CWA, followed by Blizzard Entertainment’s World of Warcraft development team later that year.
While reports suggest some studios are exploring options to become independent to avoid closure, Microsoft has yet to announce any final decisions regarding the reported restructuring.
