Following leadership changes and a period of uncertainty for Microsoft’s console division, with Phil Spencer stepping down as head of Xbox and his successor resigning, Asha Sharma assumed the CEO role. Despite her relatively short tenure and limited prior gaming industry experience, Sharma has been tasked with making difficult decisions, including significant layoffs as part of a “reboot” for Xbox. Before these restructuring changes and widespread job cuts are finalized, over 3,000 unionized employees have joined forces with the Communications Workers of America (CWA) in an effort to combat the impending layoffs.
Xbox experienced a golden era approximately 20 years ago with the launch of the Xbox 360, which competed directly with Sony’s PS3. The 360 surpassed the PS3 in performance and price, leading many, even Sony fans, to acknowledge it as the superior console. Unexpectedly, the Xbox 360 ultimately outsold the PS3. This level of success has not been replicated since. While the previous console generation was not entirely unsuccessful, the current Series X and S generation has been described as a significant disappointment in terms of both console and game sales.
Over 3,500 Employees Join CWA Union to Confront Xbox and Potentially Avert Mass Layoffs
Microsoft mandated a restructuring and transformation of Xbox, along with an aggressive demand for a 30% profit margin. Faced with the challenge of achieving this target, measures such as increasing Game Pass prices and personnel reductions were implemented. However, these actions proved insufficient. Months after Asha Sharma took over as CEO, Microsoft announced the necessity of further restructuring Xbox for its survival. Following Ubisoft’s announcement of hundreds of employee dismissals, Xbox was identified as the next target, and its workers are seeking to prevent this. To achieve this, Xbox employees have entered into an agreement with the Communications Workers of America, widely known as the CWA.
The CWA is committed to fighting against what they deem injustice, personnel cuts, and layoffs that create widespread discontent and job insecurity within the industry. The union has successfully mobilized a substantial number of individuals prepared to confront the company, with over 3,500 employees now being unionized. Examples include Morgan Goin, who had envisioned a long career at Arkane Austin, only for the studio to be closed, prompting her to join the CWA.
Microsoft Limits Negotiations to 4 Hours Monthly; Agreements May Face Delays
Another employee advocating for change is Andrew Snell, who worked in the Quality Assurance (Q&A) sector at Activision. Despite six years of employment, he was let go during a round of cuts. Other workers have shared their experiences of the harsh reality of losing their jobs without prior notice, with some facing the prospect of being forced to return to their home countries or seek employment elsewhere. Alison Veneto, a Blizzard editor and fellow CWA member, emphasized that all workers should receive adequate advance notice if they are to be laid off.
She also criticized Microsoft for increasing prices and pursuing higher profits through cost-cutting measures, prioritizing financial gains over its employees’ well-being. A notable point of contention is that Microsoft has allocated only four hours per month for negotiations, suggesting that the process could be lengthy if an agreement is not reached promptly.
