Game developers within Microsoft's Xbox division have united to advocate for increased protections against impending layoffs, which have been rumored to affect the division significantly this summer. Representatives from the United Video Game Workers, alongside employees from Microsoft's first-party studios including Bethesda's parent company Zenimax and Activision Blizzard, gathered for a press conference hosted by the Communications Workers of America (CWA) to voice their demands.
Calls for Layoff Protections
The collective push centers on securing enhanced layoff protections for all Xbox workers. Key demands include advance notification of impending job cuts, temporary hiring freezes to allow for internal advancement opportunities for existing staff, and recall rights for affected employees for a period of two years. Speakers at the press conference highlighted what they perceive as a disconnect between executive compensation and investment in AI technologies, contrasting it with recent price increases for Xbox consoles.
"The money is there, leadership is simply choosing where it goes and who pays," stated CWA District 9 vice president Frank Arce, emphasizing that Xbox employees "will not be treated as disposable."
Negotiations and Studio Impact
Union representatives indicated that Microsoft has been slow to engage with current unions on the issue of layoff protections. Developers from Zenimax and Activision reported that their proposals have not yet received a response. In contrast, workers from Blizzard's World of Warcraft team have reportedly seen "positive movement" on the matter. Compulsion Games, the studio behind South of Midnight, has reportedly already experienced some layoffs. Other developers, including Double Fine and Ninja Theory, are in negotiations with Microsoft in an effort to prevent complete studio closures.
In related news, Craig Duncan, head of Xbox Game Studios, has departed Microsoft after a 15-year tenure. Microsoft CEO Satya Nadella has recently expressed expectations for the Xbox division to improve its financial performance. This has fueled speculation that the entire Xbox division might be spun off as an independent company. Reports also suggest that further price increases for Xbox consoles could occur as early as 2027.