Labor unions in the United States and Canada have filed unfair labor practice (ULP) charges against Xbox maker Microsoft for allegedly mishandling its latest round of mass layoffs.
As noted on theNational Labour Relations Board (NRLB) website, a ULP charge has been filed against Microsoft and subsidiaries including Xbox, ZeniMax Media, Inc, id Software, Bethesda Game Studios and more for allegedly failing to provide information to labor union Communications Workers of America (CWA) and engaging in bad faith bargaining.
A number of Xbox workers across key studios including Bethesda Game Studios and id Software have unionized under the CWA banner.
The union claims Microsoft also engaged in “coercive actions” and modified employee contacts by making “unilateral changes.” The CWA filed the UILP against Microsoft and numerous Xbox subsidiaries on July 15, 2026.
CWA Canada also intends to take legal action and has accused Microsoft of “unlawfully” ousting employees at Bethesda Game Studios Montreal.
“The unions CWA and CWA Canada have jointly filed unfair labor practice complaints against Microsoft alleging the company has unlawfully fired people without giving notice to or discussing it with the union as the employer is legally obliged to do when we are in the middle of ongoing bargaining a collective agreement,” said CWA Canada president Carmel Smyth in an email to Game Developer.
“Basically the employer can not arbitrarily change working conditions while it is engaged in negotiating with the union. We will continue to file legal challenges if necessary, and do all we can to defend the rights of Bethesda Game Studios workers.”
A CWA spokesperson told Game Developer that Microsoft did not engage in “decisional bargaining” with the union before announcing its latest round of mass layoffs on July 6 and informing union members they had been laid off.
Microsoft intends toeliminate 3,200 roles across its video game divisionbefore the end of the current fiscal year—starting with widespread cuts at key subsidiaries including Obsidian, id Software, and ZeniMax Online Studios.
A number of laid off employees,speaking anonymously to Game Developer, claim the redundancies have resulted in studios losing key talent and accused Microsoft of abandoning union and non-union workers alike.
“Does Microsoft care? Absolutely not. And they seem to actually put some level of effort and care into making it as painful as possible,” said one source.
Xbox workers impacted by the layoffs (including union members and their peers) protested the decision earlier this week bystaging ‘Save Our Devs’ ralliesacross several locations, including Microsoft’s headquarters in Redmond and ZeniMax’s office in Rockville. One person in attendance told Game Developer that over 150 people turned out in Rockville alone.
“Union members and our supporters showed up in strong numbers at all six locations yesterday. We’re really proud of what we were able to put together in such short time. This was possible because both staff and fans are incredibly upset at Xbox’s actions last week,” union organizer and former Bethesda Game Studios employee Simon Prefontaine told Game Developer.
“We also announced today that our lawyers (in the USA and Canada) find these layoffs to be illegal and are therefore filling Unfair Labor Practice actions against Microsoft on both sides of the border. We’re ready to do everything we can to get our members back to work on the games we love.”
Game Developer has reached out to Xbox for comment.
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