Hundreds of union workers rally across North America to protest Xbox layoffs
CWA members and supporters are keeping pressure on Microsoft after the company announced plans to eliminate 3,200 roles across Xbox during the current fiscal year.
Hundreds of unionized video game workers amassed outside Xbox studios across the United States and Canada this week to protest the latest round of mass layoffs within Microsoft's video game division.
Union members represented by the Communications Workers of America (CWA) and local labor allies staged another round of 'Save Our Devs' rallies on August 19, 2026, in Austin, Dallas, Seattle, Rockville, Hunt Valley, Montreal, and Minneapolis. The first 'Save Our Devs' rallies were held in July.
The CWA said workers gathered to call out "layoffs and corporate greed across the industry" and to demand fair first contracts across Microsoft's vast portfolio of video game studios—which are currently being subjected to their fifth round of layoffs in three years.
In July, Xbox CEO Asha Sharma said Xbox must "reset" to find a path forward and confirmed the division will be eliminating 3,200 jobs before the end of the current fiscal year—starting with 1,600 immediate layoffs within notable subsidiaries including Obsidian, id Software, and ZeniMax Online Studios. Those cuts impacted hundreds of union workers.
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Other studios such as Double Fine, Undead Labs, Ninja Theory, and Compulsion Games have been divested by the Xbox maker, leading to layoffs at the former.
The CWA and CWA Canada are currently taking legal action against Microsoft for allegedly mishandling the cuts. In response, Microsoft said it reached out to the union to begin effects bargaining and remains committed to that process.
During candid conversations with Game Developer shortly after the layoffs were announced, multiple Xbox workers claimed the video game division is on the brink of falling apart after losing thousands of workers—representing centuries of production experience—in recent years. Those views were echoed by unionized Xbox workers who shared their opinions in a press release sent out by the CWA this week.
"Each of the 1,600 people from July's layoffs have their own unique tale, and every developer still employed at an Xbox studio lives in anxious fear, waiting to discover if they are one of the next 1600 stories," said id Software Principal Engine Programmer and CWA Local 6215 member John Roberts, who was laid off as part of July’s job cuts. "We cannot allow Microsoft to set a precedent of ignoring federal labor law, leaving so many union workers discarded."
Adding their views, Bethesda Game Studios quest designer and CWA Local 2108 member Stephanie Zachariadis, who was laid off in July, said Bethesda has lost so much veteran talent in recent years.
"When I first started working [at Bethesda Game Studios], I was in awe. I wanted nothing more than to contribute to the legacy created by the developers here: the people who forever changed my perception of what a video game could be like when I first played Fallout 3 at eight years old," they added. “Now? The legends who filled those trophy cases are, for the most part, gone, laid off, or driven away.”
Game Developer news editor Chris Kerr is an award-winning 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.
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