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CWA slams Microsoft over 'extremely disappointing' layoffs

The union, which threw its weight behind Microsoft's merger with Activision Blizzard, has underlined the 'devastating' impact of layoffs.

Chris Kerr, News Editor

September 13, 2024

2 Min Read
The CWA logo overlaid on a promotional shot of the Xbox Series X
Logo via CWA / Xbox photography via Microsoft

The Communications Workers of America (CWA) has chastised Microsoft for laying off hundreds of video game workers in what it has branded an "extremely disappointing" move.

"Microsoft's decision to lay off 650 video game workers is an extremely disappointing move from one of the world's largest and most profitable corporations," reads a CWA statement.

"This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July. While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families."

Microsoft's mass layoffs came after the giant Activision Blizzard merger

Microsoft said those redundancies were made to deliver sustainable growth following its colossal merger with Activision Blizzard.

Notably, the CWA was a vocal advocate of that deal. The union openly called for regulators to support the move after initially appearing skeptical. That change of heart came after the organization entered into a labor neutrality agreement with Microsoft, which has ultimately paved the way for employees at major studios like Bethesda and Blizzard Entertainment to unionize.

Responding to the latest round of layoffs at Microsoft (the Xbox maker previously cut 1,900 roles in January), one union member called the decision "heartless."

"Every worker deserves a voice on the job and a say over the impact of job cuts. While we would hope that a company like Microsoft with $88 billion in profits last year could achieve 'long-term success' without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common," said Samuel Cooper, senior producer at World of Warcraft and member of WoWGG-CWA.

"We stand in solidarity with everyone who lost their job today and encourage all video game workers to join with us and form unions so we can protect each other."

The CWA said it remains committed to supporting workers at Microsoft in their attempts to organize and improve their workplace, but noted "union representation doesn't always protect against layoffs." It can, however, give workers more agency.

"Collective bargaining does give workers a voice in the policies that affect them, including how layoffs are handled," added the CWA.

"Former Sony Computer Entertainment Europe President Chris Deering’s callous suggestion earlier this week that laid-off game workers should 'go to the beach for a year' shows how insulated many executives are from the impact of their decisions on their workers. Amid the constant threat of layoffs in the tech and video game industries, organizing momentum continues to surge."

Since completing its merger with Activision Blizzard, Microsoft has laid off over 2,500 workers, shuttered notable studios such as Arkane Austin and Alpha Dog Games, and sold Hi-Fi Rush developer Tango Gameworks to Krafton after initially attempting to torch the Japanese developer.

About the Author

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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