Xbox Union Demands Transparency Ahead of Expected Layoffs
The Communications Workers of America union representing Xbox employees is calling for good-faith bargaining and transparency as Microsoft reportedly prepares mass layoffs in July, confirmed by internal memos and media reports.
Microsoft is reportedly planning significant job cuts in its gaming division this July, following Bloomberg reports and comments from new Xbox CEO Asha Sharma and Chief Content Officer Matt Booty. In a late May memo, the executives acknowledged the company had overextended itself. Over the past five years, Xbox spent more than $89 billion on investments and studio support, while annual revenue dropped by nearly half a billion dollars.
The CWA union, representing about 3,500 video game workers, is preparing to negotiate for employee protections and transparency. Frank Arace, CWA District 9 Vice President, stated workers are not disposable and argued the money exists but is being diverted by executives. CWA Treasurer Sherveen Uduwana noted Microsoft has raised console prices and CEO Satya Nadella earned $96 million in 2025, concluding the company chooses not to support developers.
Several Xbox employees shared their experiences. Morgan Goin, an encounter designer on "Elder Scrolls Online," lost years of accrued benefits when Arkane Austin was suddenly closed. Alison Veneto, a Blizzard story editor, said layoffs consistently remove talent and institutional knowledge. The union accuses Microsoft of failing to engage meaningfully in negotiations, leaving proposals unanswered for months.
CWA calls on Xbox leadership to bargain in good faith and adopt concrete layoff protections. "We're done paying for executives' failures," said Andrew Snell, an Activision QA tester.
