CWA Backs Xbox Workers as Layoff Reports Swirl Around Microsoft Gaming

The Communications Workers of America is publicly backing its members at Xbox as reports continue to point to another round of layoffs across Microsoft’s gaming business. During an online press conference, CWA District 9 vice president Frank Acre said Xbox workers “will not be treated as disposable,” according to Kotaku’s report.

Acre argued that Microsoft has the money to protect jobs, pointing to recent console price increases and the value workers have created for Xbox. Other union representatives and Xbox staff also criticized Microsoft’s spending priorities, including executive compensation and investment in AI.

“The money is there. Leadership is simply choosing where it goes and who pays,” Acre said. “It’s our CWA members who make the gains that make Xbox valuable.”

Microsoft, in a statement to press, said it respects “the right of our team members to make their voices heard” and said it continues to negotiate in good faith with the CWA. The company also pointed to finalized bargaining agreements with the union and its stated labor principles.

The tension comes after several reports about possible cuts and restructuring inside Xbox. Bloomberg previously reported that more layoffs were being planned, while other reports have claimed Microsoft has looked at closing or selling some studios, including Compulsion Games, Double Fine, and Ninja Theory. The Verge has reported that Ninja Theory told staff it is looking for a buyer.

Microsoft and the CWA have a recent history here. The company entered a labor neutrality agreement with the union in 2022 while trying to secure approval for its Activision Blizzard acquisition, a move covered at the time in the labor agreement report. The CWA later supported the deal, saying workers would have “a seat at the table.”