Unionized employees at Microsoft's gaming division have voiced strong criticism regarding the company's approach to layoffs and studio closures, describing the situation as a "destructive reset" that leaves developers feeling expendable. Workers represented by the Communications Workers of America (CWA) are calling for greater transparency and a more humane approach to restructuring, particularly in light of Microsoft's significant investments in artificial intelligence.
"I cannot do my job when Microsoft refuses to do theirs," stated Morgan Goin, a senior encounter designer at ZeniMax Online and a union representative. Goin, who experienced the closure of Arkane Austin, highlighted a "clear gap between what we need, how Microsoft talks about us publicly, and how we're being treated across all of their studios." She emphasized that hard work and successful projects do not guarantee job security, a sentiment echoed by other union members.
Allison Veneto, a senior editor for franchise development at Blizzard, another studio recently affected by cancellations and layoffs following Microsoft's acquisition, lamented the loss of talent and institutional knowledge. "Every time these layoffs happen, we lose incredible talent in years of institutional knowledge," Veneto said. "We want layoffs to be treated not as a quick fix to a quarterly balance sheet, but only as an absolute last resort."
Mahreen Fatima, a senior environment artist at Blizzard, further illustrated the precariousness of employment within the company. "In this climate of layoffs, it feels like there's really no difference between being contract and being full-time, we're all just as equally dispensable in the eyes of the company," Fatima remarked. The union members dispute Microsoft's justifications for cost-cutting measures, pointing to increased console prices and substantial investments in AI, such as the over $80 billion allocated for AI infrastructure.
Fatima added that leadership cites revenue margins to justify actions, but "they are not short on money. Look at the billions that they're using to invest in AI. They're just choosing not to protect us." The article notes that Microsoft reported $27.2 billion in earnings in a single quarter recently, and CEO Satya Nadella's pay increased by 22% between 2024 and 2025. The significant investment in AI is contrasted with the potential to fund numerous game development studios for years, raising questions about corporate priorities.
The CWA representatives argue that this pattern of uncertainty discourages developers from investing their best efforts. "Why would a game developer bother to put forward their best work under these conditions?" Goin questioned. The union is calling on Microsoft to engage more constructively with its employees and to treat layoffs as a last resort rather than a routine business practice.