Unionized Xbox employees have publicly voiced their opposition to impending layoffs, outlining a series of demands aimed at protecting workers and ensuring accountability from Microsoft. The concerns were raised during a press conference held by the Communications Workers of America (CWA), shortly before widespread layoffs at Xbox were reportedly anticipated.
These potential job cuts follow a period of significant upheaval within Microsoft, including the 9,000 layoffs across the company last year, which led to the cancellation of projects like the reboot of Perfect Dark and the closure of The Initiative studio. Sources indicate that studios such as Double Fine and Ninja Theory, as well as South of Midnight developer Compulsion Games, may be at risk.
Developers are reportedly exploring options for new ownership or independence, though Microsoft has not officially confirmed the layoffs or studio closures. However, Xbox's new boss Asha Sharma did acknowledge a company-wide "reset" in a memo, fueling fears among employees about their future.
At the press conference, CWA members expressed frustration with the negotiation process, citing delays in Microsoft's response to union proposals. One positive note was the mention of "real gains" secured by the World of Warcraft bargaining team at Blizzard.
The union's proposed demands include advance notice for layoffs, a two-year recall period for laid-off employees, adequate severance packages, voluntary severance options, and the transfer of affected staff to other roles within Microsoft. They are also advocating for broader protections that extend beyond unionized workers.
A Microsoft spokesperson stated to IGN that the company is committed to working with the CWA. "We respect the right of our team members to make their voices heard," the spokesperson said, adding that Microsoft has a "long track record of good faith partnership with labor organizations" and is continuing negotiations across Xbox.
Developers speaking at the conference described feeling "expendable" and questioned the value of their hard work under such uncertain conditions. Morgan Goin, a senior encounter designer at ZeniMax Online Studios, criticized the company's decision-making, pointing to recent console price increases as an example of Microsoft exacerbating issues like RAM shortages. "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 stated.
Mahreen Fatima, a senior environment artist at Diablo, highlighted Microsoft's significant investments in AI, suggesting the company has financial resources to protect its employees. "They're just choosing not to protect us," Fatima said.
Alison Veneto, a senior editor at Blizzard, emphasized how the constant threat of layoffs hinders creativity and productivity. "My coworkers just want to focus on making amazing games for players," Veneto remarked. "They do not want to spend every day worrying about whether another round of layoffs is coming."
Activision QA tester Andrew Snell and Fatima concluded by emphasizing that the actions of Microsoft executives negatively impact both workers and players. "Workers and players are on the same side of this and we're done paying for executives' failures," Snell declared. Fatima added, "We, the developers, demand that you respect our labor and our games."