Microsoft Faces Allegations of Unjust Labor Practices from U.S. and Canadian Gaming Unions
In the wake of significant layoffs and turmoil within the Xbox division, the Communications Workers of America (CWA) has lodged complaints of unfair labor practices against Microsoft with the National Labor Relations Board (NLRB). The CWA’s allegations include bad faith negotiations, coercive behavior, breaching contracts, and failing to notify employees, as detailed in the NLRB filing. This case was initiated on July 15 in the United States, while CWA Canada is also pursuing legal action against Microsoft.
On July 6, Microsoft disclosed plans to eliminate 1,600 positions immediately within its Xbox sector, with an additional 1,600 employees expected to be cut in the upcoming fiscal year. This downsizing affected key entities including Activision, Blizzard, King, Mojang, Xbox Game Studios, and ZeniMax, the latter of which encompasses notable studios like Arkane, Bethesda, id Software, and MachineGames. Moreover, Microsoft sold off four studios—Compulsion Games, Double Fine, Ninja Theory, and Undead Labs—and is reportedly evaluating the closure of Arkane. On the same day, another round of layoffs resulted in the termination of 3,200 additional staff beyond the Xbox division.
The CWA represents a significant number of employees within Xbox studios across both the U.S. and Canada, totaling around 3,500 individuals throughout the gaming industry. Since late 2021, there has been a robust push for unionization among video game workers, with several studios under Microsoft leading in this initiative.
CWA Canada specifically advocates for Bethesda employees located in Montreal. On July 6, the union expressed its demands for fair treatment for those laid off, stating, “The Montreal workforce, involved in popular franchises like Fallout and The Elder Scrolls, was taken aback. They received no advance notice, were unaware of the reasons behind their layoffs, and are concerned about the repercussions on the projects they contribute to.”
Prior to the layoffs announcement, union members at Xbox had urged Microsoft to pursue open and good-faith negotiations, accusing the company of consistently overlooking union proposals, poorly managing resources, and hesitating in implementing worker protections.
“We are here to unequivocally state: These workers will not be viewed as expendable,” remarked Frank Arace, Vice President of CWA District 9. He asserted that Microsoft possesses the financial resources to support its Xbox teams and avert layoffs, yet has opted to allocate funds elsewhere, resulting in the loss of creative talent and expertise.
In response to the layoffs, employees from six studio locations in the U.S. and Canada gathered to rally under the slogan “Save Our Devs.”
Simon Prefontaine, a union organizer and former Bethesda employee, conveyed to media outlets, “Our legal representatives in both the U.S. and Canada deem these layoffs illegal and are filing unfair labor practice charges against Microsoft across the border. We are fully prepared to take all necessary actions to ensure our members can return to the games they cherish.”
