Everyone in the gaming community is waiting for the shoe to drop, so to speak, as we inch everyday towards more layoffs. Amid the growing concern and various reports that Microsoft is getting ready to make another round of layoffs around its gaming business, unionized workers at XBOX are calling for layoff protections.
Some of Xbox’s unionized groups have been negotiating contractual layoff protections at the bargaining table for months, and say Xbox has been dragging its feet. https://t.co/yJYUqlRuve
— Kotaku (@Kotaku) June 30, 2026
“Across XBOX, more than 3,500 workers have chosen to form unions with CWA since 2002, following Microsoft’s agreement to a neutrality framework that allowed workers to make that choice freely, without fear of retaliation or coercion,” the CWA said.
CWA District 9 Vice President Frank Arce said XBOX workers “will not be treated as disposable. The money is there, leadership is simply choosing where it goes and who pays.”
Staff has argued that Microsoft had the money to avoid layoffs. United Video Game Workers representative Sherveen Uduwana noted that Microsoft CEO Satya Nadella was paid $96.5 million last year.
Diablo 4 Senior Environment Artist Mahreen Fatima also noted that the company has spent billions on AI tech, arguing that Microsoft is “choosing not to protect us” and demanding proof it’s actually short enough on money to justify mass layoffs at XBOX.
A Microsoft Spokesperson told IGN that it will continue to negotiate with the CWA to reach agreements across XBOX.
“We respect the right of our team members to make their voices heard. We have a long track record of good faith partnership with labor organizations, as demonstrated by the several finalized bargaining agreements our teams have reached with the CWA and our labor principles. We are continuing to negotiate in good faith with the CWA to reach agreements across XBOX.”