Unionized Xbox workers demand layoff protections ahead of expected Microsoft gaming cuts

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

CWA members have called for immediate bargaining following the reports that sweeping layoffs will be finalized at the end of Microsoft's fiscal year on June 30.

Earlier this month, Bloomberg’s Jason Schreier said the Xbox layoffs will likely result in a "bloodbath" of job losses and studio closures , leaving developers "punished" simply for following Microsoft's orders.

Word of Xbox staff redundancies and development studio shutdowns is now rife, following an ominous warning from newly-installed Xbox CEO Asha Sharma that the console maker's slim profit margin was no longer sustainable. While it has been reported that Xbox studios such as South of Midnight maker Compulsion Games , Kiln and Keeper developer Double Fine, and Hellblade helmer Ninja Theory are just some of the teams now facing shutdown, the exact details remain unclear and unfinalized.

It has been alleged that Microsoft announced Ninja Theory's new game, Senua, at its Xbox Games Showcase earlier this month knowing that it planned to shut the studio down because it believed the promise of a newly announced game would help draw investor interest in the developer. There is now concern that Senua may never come out.

IGN has asked Microsoft for comment but has yet to receive a response.

Microsoft laid off an eye-watering 9,000 staff from its gaming division in July 2025. A number of games were canceled as part of those cuts, including Rare’s Everwild, and studios shut down, such as Perfect Dark developer The Initiative. Staff who remain at Xbox are now racing themselves for a potential repeat situation just a year later.

“Across XBOX, more than 3,500 workers have chosen to form unions with CWA since 2022, following Microsoft’s agreement to a neutrality framework that allowed workers to make that choice freely, without fear of retaliation or coercion,” the CWA said in a note to press.

It’s unclear what the CWA can do to prevent the cuts, however. Microsoft's vast gaming business includes a long list of first-party studios, including the developers of Halo, Gears of War, and Forza Horizon. But it also owns Bethesda (The Elder Scrolls, Fallout), Activision Blizzard (Call of Duty, Diablo, World of Warcraft), and, let's not forget, mobile hit Candy Crush and the best-selling video game of all time, Minecraft.

A recent report claimed Sharma is now speeding up development on new The Elder Scrolls, Fallout, and Halo games as she prepares to hit the reset button. Details on the potential shakeup come from The Information (via Reuters ), which reported on the latest in a long line of recent shifts at the company. It says that, according to three of its sources, Microsoft hasn't ruled out turning the brand into a wholly-owned subsidiary. It's said the move could result in Xbox being operated as a joint venture with other partners or even potentially sold.

Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.