'Not Disposable': 3,500 Xbox Workers Ready to Fight Layoffs

"Will not be treated as disposable." That was the line from CWA District 9 vice president Frank Arce during a virtual press conference on June 29, attended by more than 200 participants, as reported by WCCFtech. The call gathered unionized Xbox employees from studios across Microsoft's gaming division to deliver a unified message ahead of what's expected to be one of the largest rounds of layoffs the gaming industry has seen.

The context is bleak. Earlier this month, Xbox CEO Asha Sharma confirmed Microsoft was "resetting" its games business. Bloomberg reported that Compulsion Games, Double Fine, and Ninja Theory were at risk of closure, with Undead Labs added to that list days later. Some of those studios are reportedly trying to negotiate independence rather than face shutdown. Against that backdrop, the CWA's press conference wasn't a plea. It was a warning.

Developer after developer stepped up with prepared statements. Morgan Goin, who works on Elder Scrolls Online at ZeniMax Online, described how the shuttering of Arkane Austin pushed her to join the union. She said employees there had been reassured by management that they were hitting their targets before the studio was killed. Andrew Snell, a QA tester with six years at Activision, recounted losing his job in a round of contractor cuts before successfully reapplying. Everyone had a different path to the CWA, but the demands were the same: advance notice of layoffs, hiring freezes that give existing staff first access to open roles, and strong severance for anyone ultimately cut.

Microsoft's Spending Problem

The sharpest moments came when workers pointed at where Microsoft's money is actually going. Diablo 4 senior environment artist Mahreen Fatima said the company is "choosing not to protect us," demanding proof that Microsoft is short on cash before it justifies mass layoffs. Sherveen Uduwana, treasurer for the United Video Game Workers, noted that CEO Satya Nadella was paid $96.5 million last year. Arce pointed to Xbox's recent decision to raise console prices, adding: "The money is there, leadership is simply choosing where it goes and who pays."

I think they're right to push on this. Microsoft has poured billions into AI infrastructure while simultaneously telling its game studios there isn't enough to go around. Workers at these studios aren't asking for anything radical; advance notice, recall rights, and a hiring freeze before external recruitment are standard protections in other industries.

One detail from the press conference that deserves attention: Microsoft has reportedly cut the time allotted for contract negotiations from 12 hours per month down to 4. That's not a company engaging in good faith. It's a company running out the clock. Blizzard editor Alison Veneto put it plainly: "Everyone at Xbox deserves long-term certainty on where they stand should layoffs happen."

The CWA now represents over 3,500 unionized workers across Microsoft's gaming division, a number that has grown steadily since Bethesda Game Studios became the first Microsoft game studio to fully unionize in July 2024. When the expected layoffs are formally announced, those 3,500 members plan to bring Microsoft back to the bargaining table. Uduwana closed the conference by rejecting the "reset" framing entirely, arguing that another round of mass cuts is just a repeat of a pattern that hasn't worked. Meanwhile, across the Atlantic, staff at Ubisoft Barcelona are launching their own strikes this week over 51 proposed layoffs, with partial work stoppages planned every Tuesday and Thursday through July 17, organized by Spanish union La Confederación General del Trabajo. Two different companies, two different continents, the same fight.