'We're Done Paying for Executives' Failures' — Unionized Xbox Developers Hold Press Conference Amid Reports of Massive Layoffs

Unionized Xbox employees are pushing back against the company's looming layoffs and have outlined various demands. Earlier today, the Communications Workers of America (CWA) held a press conference where several unionized Xbox employees spoke out against Microsoft. The conference took place ahead of reported layoffs at Xbox, which insiders have described as a 'bloodbath.' This comes as a painful reminder of last year's layoffs at Microsoft, where 9,000 people lost their jobs across the entire company (not just Xbox), resulting in multiple project cancellations, including the long-awaited Perfect Dark reboot. The studio behind that game, The Initiative, was also shuttered without ever releasing a title. The upcoming layoffs reportedly put more studios at risk of closure, such as Double Fine and Ninja Theory. South of Midnight developer Compulsion Games is also reportedly at risk of shutting down, despite winning a Peabody Award earlier this year. New Xbox boss Asha Sharma celebrated the win on social media months before the reported demise: 'A well-deserved recognition for storytelling that truly matters!' These developers are reportedly negotiating with Microsoft to find new owners or go independent, but the outcome remains uncertain. Microsoft hasn't explicitly confirmed layoffs or studio closures to the public, but Sharma stated in a memo that the company will perform a 'reset' to better position itself for the future. As a result, Xbox developers fear for their futures. During the CWA press conference, speakers expressed frustration that Microsoft hasn't given all union reps time to bargain, with one CWA member stating that Microsoft sat on a proposal for four months. However, one member credited Microsoft after the World of Warcraft bargaining team at Blizzard saw 'real gains' this past weekend. The speakers outlined their demands from Microsoft, including advance notice of layoffs, two-year recall rights (the ability to be rehired if their position is reopened after layoffs), adequate severance, voluntary severance to avoid involuntary layoffs, and transferring impacted staff to other studios or roles within the larger company. They also hope to cement protections for all workers, not just unionized ones. A Microsoft spokesperson told IGN that the company is working with the CWA to find an appropriate agreement: 'We respect the right of our team members to make their voices heard. We have a long track record of good faith partnership with labor organizations, as demonstrated by the several finalized bargaining agreements our teams have reached with the CWA and our labor principles. We are continuing to negotiate in good faith with the CWA to reach agreements across XBOX.' During the press conference, speakers said they felt 'expendable' and 'dispensable.' 'We refuse to be left in the dark as the company decides to restructure in a way that seriously affects us all,' said ZeniMax Online Studios senior encounter designer Morgan Goin. 'We're being treated as expendable, valued one week, and cut the next. Why would a game developer bother to put forward their best work under these conditions? Hard work and great games do not save you from layoffs under Microsoft. That's why we're coming together across Xbox to make our voices heard and to demand real accountability.' Goin claimed that Microsoft's own actions have created problems others are now paying for. Last week, Xbox announced another price hike on consoles, sparked by a component crisis. Heavy investment in AI has led to massive price increases on RAM, causing issues with producing affordable consoles, and Microsoft is a significant player in the AI space. 'Even as the company calls us too costly to keep, it is raising console prices on players again, citing a RAM shortage that Microsoft itself has exacerbated,' Goin continued. 'Layoff rumors are swirling, players are paying more and executives are calling it a reset.' Diablo senior environment artist Mahreen Fatima echoed this sentiment, pointing out that Microsoft's investment in AI proves the tech giant has plenty of money. 'Leadership points to revenue and margins to justify cutting us and then last week, raised console prices on players for the third time since 2025,' said Fatima. 'They are not short on money. Look at the billions that they're using to invest in AI. They're just choosing not to protect us.' Blizzard senior editor Alison Veneto stated that the lack of protections and looming layoffs make it harder for people to do their jobs, creating issues for those trying to make great games. 'My coworkers just want to focus on making amazing games for players,' said Veneto. 'They do not want to spend every day worrying about whether another round of layoffs is coming. It drains away the energy we should be using to be creative. We want layoffs to be treated not as a quick fix to a quarterly balance sheet, but only as an absolute last resort. But if they're truly unavoidable, we are asking Microsoft for common sense protections around layoffs and a real effort to lessen the burden on affected employees, not only for the workers at the bargaining table, but for everyone who will be affected by Xbox layoffs. Our game developers deserve that.' It remains to be seen what will come of this, but Activision QA tester Andrew Snell and Fatima both made it clear that Microsoft's actions don't just impact workers, but also the players: 'Workers and players are on the same side of this and we're done paying for executives' failures,' said Snell. 'We, the developers, demand that you respect our labor and our games,' added Fatima. 'Together we've built a huge community and touched the lives of millions of gamers everywhere. Don't disrespect the developers. Don't disrespect the gamers.'