The Communications Workers of America (CWA) union has come out in support of its members at Xbox as reports of mass layoffs continue to loom.
At an online press conference – as reported by Kotaku – CWA District 9 VP Frank Acre said staff within Microsoft’s games business “will not be treated as disposable”.
He continued, saying that the Xbox giant has no shortage of money – citing the price increase in consoles recently – while Sherveen Uduwana, a rep for United Video Game Workers, pointed to the huge sums being spent on executive compensation, such as Satya Nadella’s $96.5 million compensation for the last financial year. Meanwhile, Diablo 4 senior environment artist Mahreen Fatima noted that Microsoft has spent massive amounts on artificial intelligence.
“They’re just choosing not to protect us,” they said.
Acre added: “The money is there. Leadership is simply choosing where it goes and who pays. Every company faces real business challenges and pressures. That is a fact. But let me tell you this: it’s our CWA members who make the gains that make Xbox valuable.”
In a statement to press, an Xbox spokesperson said that the company respects “the right of our team members to make their voices heard.
“We have a long track record of good faith partnership with labour organisations, as demonstrated by the several finalised bargaining agreements our teams have reached with the CWA and our labour principles. We are continuing to negotiate in good faith with the CWA to reach agreements across Xbox.”
Microsoft entered into a labour neutrality agreement with the CWA back in 2022 when the Xbox giant was trying to push through its acquisition of Activision Blizzard. The union then backed the deal, saying that employees will have “a seat at the table”.
In June, Bloomberg reported that Xbox was planning to make layoffs as new CEO Asha Sharma attempts to redirect the business. There’s even reporting that Microsoft was looking to close Compulsion Games, while Double Fine and Ninja Theory could also be shut down. The Verge reports that Ninja Theory has told staff that the studio is looking for a buyer.
Double Fine recently became the latest Microsoft subsidiary to unionise.
Meanwhile, The Information says that one option being weighed up by Microsoft is to spin off Xbox as either a separate entity or a wholly-owned subsidiary. The games business might also be sold.
