Last week’s round of mass Xbox layoffs has been sharply criticized by Communications Workers of America (CWA) — the same union that vehemently spoke in favor of Microsoft’s acquisition of Activision Blizzard. The company has laid off 650 workers from its gaming division, which is in addition to the 2,000 jobs that were eliminated in January 2024 and closure of three studios in June.
CWA’s statement on September 2024’s Xbox layoffs
“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,” the CWA wrote. “This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July.”
CWA lamented the destruction of livelihoods by Microsoft after it reported an estimated $88 billion profit last year. In a memo obtained by IGN, Xbox boss Phil Spencer said, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organise our business for long term success.”
In October 2023, CWA insisted that Microsoft’s acquisition of Activision Blizzard would “transform the video game and technology labor market,” calling the merger a “new day for workers at Activision Blizzard.” Since then, Xbox has eliminated over 2,500 roles, thanks in no small part to the $75.4 billion deal.
