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Unionized Xbox Workers Demand Layoff Protections Ahead of Expected Cuts to Microsoft's Gaming Business

CWA members are seeking immediate bargaining as reports say Microsoft may finalize sweeping layoffs and studio closures at the end of its fiscal year.

  • On Monday, the Communications Workers of America held a press conference demanding layoff protections for Microsoft Xbox employees ahead of expected personnel cuts finalized at fiscal year-end tomorrow.
  • Xbox CEO Asha Sharma cited unsustainable profit margins to justify potential reductions, yet CWA District 9 Vice President Frank Arace countered that "the money is there" to keep teams intact.
  • Union representatives pointed out that Microsoft CEO Satya Nadella collected $96.5 million last year, while Activision Publishing members noted they have 20 proposals awaiting Microsoft's response.
  • Reports suggest Microsoft may shutter studios including Ninja Theory, Compulsion Games, and Double Fine, with critics alleging the company announced Senua at the Xbox Games Showcase earlier this month despite planned closures.
  • Bloomberg reporter Jason Schreier warned the layoffs will likely result in a "bloodbath," leaving developers "punished" for following orders, as growing CWA membership prepares staff for repeated instability.
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techrights.org broke the news on Monday, June 29, 2026.
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