Xbox Workers Demand Layoff Protections Amid Expected Cuts

Unionized Xbox workers have demanded layoff protections ahead of what is reportedly a significant round of cuts to Microsoft’s gaming business.

CWA members are calling for immediate bargaining following reports of sweeping layoffs to be finalized by June 30. Bloomberg's Jason Schreier predicts job losses and studio closures, attributing them to Microsoft's directives. Microsoft is in talks with CWA to secure agreements across Xbox.

Xbox staff redundancies and studio shutdowns are anticipated after Xbox CEO Asha Sharma's warning on unsustainable profit margins. Studios like Compulsion Games, Double Fine, and Ninja Theory are reportedly facing closure. Concerns arise over the fate of Ninja Theory's new game, Senua, amidst speculations of studio shutdown.

Microsoft previously laid off 9,000 employees in July 2025, canceling games like Everwild and shutting down studios like The Initiative. Remaining Xbox staff fear a repeat scenario. Over 3,500 Xbox workers have unionized since 2022, facilitated by Microsoft's neutrality framework. The CWA's influence on preventing the cuts remains uncertain.

Microsoft's gaming business encompasses first-party studios like Halo, Gears of War, and Forza Horizon, along with Bethesda, Activision Blizzard, Candy Crush, and Minecraft. Recent reports suggest a potential reorganization, with a focus on The Elder Scrolls, Fallout, and Halo games. The company may consider transforming Xbox into a subsidiary or a joint venture.