Microsoft Faces Unfair Labor Practice Charges from Video Game Unions

The Communications Workers of America (CWA) has filed unfair labor practice charges against Microsoft with the National Labor Relations Board (NLRB). The charges, filed on July 15, allege that the Xbox division engaged in bad faith bargaining, coercive actions, contract repudiation, and failure to provide proper notice to employees. This legal action follows Microsoft's announcement on July 6 of immediate job cuts affecting 1,600 employees across its Xbox studios, with plans to eliminate another 1,600 positions over the coming fiscal year. The layoffs impacted multiple studios under Activision, Blizzard, King, Mojang, Xbox Game Studios, and ZeniMax, including Arkane, Bethesda, id Software, and others. Additionally, Microsoft sold off four studios—Compulsion Games, Double Fine, Ninja Theory, and Undead Labs—and is reportedly considering closing Arkane.

The CWA represents hundreds of workers at Xbox studios in the United States and Canada, with a total of 3,500 members across the video game industry. In Canada, CWA Canada specifically represents Bethesda employees in Montreal. On July 6, the union issued a statement demanding fair treatment for laid-off workers, noting that the Montreal staff were caught off guard with no advance notice or explanation.

Prior to the layoffs, Xbox union members had publicly called for good faith negotiations, accusing Microsoft of ignoring union proposals, mismanaging resources, and delaying worker protections. Frank Arace, CWA District 9 Vice President, stated that the workers would not be treated as disposable, arguing that Microsoft had the financial means to support its teams but chose to allocate funds elsewhere, losing creative talent and institutional knowledge.

In response, Xbox employees at six studio locations in the US and Canada held a protest rally on Wednesday under the banner "Save Our Devs." Union organizer and former Bethesda employee Simon Prefontaine reportedly told Game Developer that lawyers in both countries view the layoffs as illegal and are pursuing legal actions on both sides of the border. "We're ready to do everything we can to get our members back to work on the games we love," he said.