The Communication Workers of America (CWA) has slammed Microsoft’s announcement that it is laying off another 650 people from its gaming division, with the union formed to represent Activision Blizzard’s World of Warcraft team calling the layoffs “heartless.”
Yesterday, September 12, Xbox boss Phil Spencer sent a memo to employees, obtained by IGN, outlining plans to lay off 650 employees, mostly from Activision Blizzard’s corporate and support divisions, while confirming that no games or devices have been canceled, and no studios have been closed.
However, two Activision Blizzard development teams were also affected: the Activision team responsible for Call of Duty Warzone Mobile and the Blizzard team responsible for Warcraft Rumble.
The latest layoffs mean Microsoft has shed a staggering 2,550 employees from its gaming division since acquiring Activision Blizzard for $69 billion in 2023. In his memo, Spencer made clear the layoffs are related to the acquisition.
In response, the CWA issued a statement criticizing Microsoft’s plans. “Microsoft’s decision to lay off 650 video game industry employees is an incredibly disappointing move by one of the largest and most profitable corporations in the world,” the CWA said. “This news comes on the heels of Sony Interactive Entertainment subsidiary Bungie announcing 220 layoffs in late July. While the CWA does not represent any of the individuals losing their jobs, we understand how devastating these layoffs are to employees and their families.”
The CWA also included a statement from Samuel Cooper, a senior producer on World of Warcraft and a member of the World of Warcraft Game Makers Guild. WoWGG was formed under the CWA in July after the creators of World of Warcraft, one of the largest and longest-running MMORPGs in the world, officially formed a union. It is Blizzard’s first “wall-to-wall” union, covering the entire game development team rather than just a single department such as QA. WoWGG is officially recognized under Microsoft’s labor neutrality agreement and certified by an independent arbitrator.
“Every employee deserves a voice at work and the opportunity to weigh in on the impact of job cuts,” Cooper said. “While we hope that a company like Microsoft, which made $88 billion in profit last year, can achieve ‘long-term success’ without destroying the livelihoods of our 650 associates, heartless layoffs like this have become all too common. We stand in solidarity with all those who lost their jobs today and encourage all game industry workers to join us in forming a union so we can protect each other.”
Speaking in August, Spencer said the pressure is now on Xbox to deliver after Microsoft’s acquisition of Activision Blizzard. “And we’re in business,” Spencer said. “It’s definitely true that at Microsoft, the bar is high for us in terms of the delivery that we have to give back to the company. Because we get a level of support from the company that’s just incredible and what we’re able to do.”
The CWA also highlighted recent and controversial comments by former Sony Computer Entertainment Europe CEO Chris Deering, who said that laid-off gaming workers should “go to the beach for a year” or “drive an Uber”.
The comments, the CWA said, “show how isolated many directors are from the impact of their decisions on employees.”
The video game industry has seen more than 20,000 layoffs in the past two years, with major companies including Microsoft, Sony, and the struggling Embracer Group not only cutting jobs but closing entire studios.
Microsoft closed Redfall developer Arkane Austin with Hi-Fi Rush and Ghostwire Tokyo developer Tango Gameworks in May 2024. The move was met with shock and anger among industry colleagues and fans alike..
Meanwhile, Embracer Group Shuts Down Saints Row Developer Volition in 2023among others. Chinese video game company NetEase has also reportedly laid off most of the employees of Ouka Studios, the creator of Visions of Mana. with plans for complete closure.
Amid these drastic cuts, several unions representing the video game industry also emerged. In July Skyrim and Fallout creator Bethesda Game Studios has become the first Microsoft developer to fully unionize under the CWA.
Photo credit: CFOTO/Future Publishing via Getty Images.
Wesley is the UK News Editor for IGN. Find him on Twitter @wyp100. You can contact Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
