Xbox unions prepare layoff terms as contract cuts begin

Xbox unions represented by the Communications Workers of America are pushing for formal negotiations on potential layoffs before any announcements occur. External vendor contracts have already been terminated ahead of the company's fiscal year end. Employees at several studios remain uncertain about their future.

Unions at ZeniMax QA testers, Raven Software, and Blizzard Albany have secured collective bargaining agreements that outline severance and recall rights. Other Xbox unions continue to bargain individually over layoff impacts, including transfers between studios.

Morgan Goin and Alison Veneto spoke after a CWA press conference on June 29. They described ongoing efforts to secure recall rights and job transfers, noting that Microsoft has rejected some proposals in recent weeks.

Xbox ended contracts with external vendors supporting its June showcase as the fiscal year closed on June 30. Mass layoffs for full-time staff are expected in the coming weeks, though no official notifications have been issued yet.

Union leaders are also assisting non-unionized workers through resources on Discord and coordination with United Video Game Workers. They emphasize that annual layoffs have become a pattern at Xbox.

Makala yanayohusiana

Xbox executives announce return to Xbox branding and reevaluation of game exclusivity in a company meeting.
Picha iliyoundwa na AI

Xbox drops Microsoft Gaming name and reevaluates exclusivity

Imeripotiwa na AI Picha iliyoundwa na AI

Xbox CEO Asha Sharma and chief content officer Matt Booty announced the gaming division is reverting from 'Microsoft Gaming' to simply 'Xbox.' In a memo shared on Xbox Wire following an all-hands meeting, they addressed player frustrations and pledged to reevaluate the approach to game exclusivity. The move signals a renewed focus on console as the foundation amid broader platform ambitions.

Union members at Microsoft Xbox held a press conference on June 29 to oppose expected mass layoffs. They argued the company has the resources to avoid cuts and called for stronger protections across all studios.

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Microsoft is reportedly weighing the closure of Undead Labs, the studio behind the State of Decay series, as part of a broader reset of its Xbox division. The move could affect 110 jobs at the studio, which is currently developing State of Decay 3.

Developers at Rockstar Games have formed the Rockstar Game Workers Union to push for better conditions and justice for dismissed staff. The move comes as legal action over last year's firings continues.

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Microsoft is weighing options to restructure its Xbox division, including turning it into a wholly-owned subsidiary. The move aims to boost the business performance of the gaming unit.

Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

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Satya Nadella said Xbox must pursue economically viable growth after years of heavy investment with limited returns. He spoke at The New York Times Hard Fork event on June 10.

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