Unionized workers at Microsoft's Xbox division have publicly declared their refusal to be "disposable" in the face of potential mass layoffs. At a press conference organized by the Communications Workers of America (CWA), employees from multiple Xbox unions shared their concerns and called for greater job security.
Frank Arce, vice president for CWA District 9, opened the conference by condemning both past and impending layoffs, stating that Microsoft workers "will not be treated as disposable." Several speakers argued that the reported layoffs are unnecessary, particularly in light of recent Xbox console price increases. Arce highlighted that the company has the financial resources, and leadership is merely deciding where to allocate those funds.
Further challenging the notion of financial hardship, representatives pointed to Microsoft CEO Satya Nadella's reported $96.5 million salary from the previous year. Mahreen Fatima, a senior environment artist on Diablo 4, also cited Microsoft's substantial investments in artificial intelligence, questioning the company's claims of financial constraints. "They're just choosing not to protect us," Fatima stated.
Microsoft Xbox comprises several unions across its various game studios, many of which were formed following a labor neutrality agreement in 2022. The timing of these union formations means that some have already secured contracts with layoff stipulations, while others are still in the midst of bargaining. Union members criticized management for delaying contract negotiations, especially concerning layoff protections. While CWA members noted positive progress with the World of Warcraft union regarding layoff protections, Zenimax union members reported that their proposals have been pending for months without a response. An Activision Publishing union member indicated that their group is awaiting responses on 20 different proposals.
The union members stressed the importance of extending layoff protections to all workers, not just those within unions. Their demands include advanced notice of layoffs, two years of recall rights, and hiring freezes to allow existing employees opportunities within Xbox. Andrew Snell, a QA tester at Activision Publishing, announced that Xbox unions would unite across their different teams and units to oppose future layoffs, declaring, "We're done paying for executives' failures."
While no official layoff confirmations have been made, Xbox is widely expected to undergo significant restructuring and personnel cuts in the near future, potentially after its fiscal year concludes. Reports have also surfaced regarding potential studio closures, including Compulsion Games, Double Fine, and Ninja Theory, though these studios may have avenues to negotiate alternative exit strategies. Amidst these reports, Craig Duncan, the head of Xbox Game Studios, has resigned.