The CWA union has stated that Xbox employees should not be considered "disposable" amid the threat of upcoming layoffs

The Communications Workers of America (CWA) has expressed its backing for Xbox employees amid ongoing speculation about significant job cuts.

During a virtual press event, as highlighted by Kotaku, Frank Acre, CWA District 9 Vice President, emphasized that employees at Microsoft's gaming division are critical and should not be treated as expendable. Acre highlighted Microsoft's financial strength, noting recent console price hikes, while Sherveen Uduwana from United Video Game Workers mentioned substantial executive payouts, specifically referring to the $96.5 million received by CEO Satya Nadella last year. Mahreen Fatima, Diablo 4's senior environment artist, discussed the company's investments in artificial intelligence.

"They're opting not to safeguard us," stated Acre.

Acre further remarked: "The funds are there. It's a matter of leadership deciding where it is allocated and who bears the cost. Every business deals with genuine challenges and pressures. But our CWA members are the ones whose achievements enhance Xbox's value."

An Xbox representative commented that the company acknowledges its team members' rights to express their concerns. They stated, "We have consistently fostered a cooperative relationship with labor organizations, as proven by several completed bargaining agreements with the CWA and our labor principles. We continue to engage in sincere negotiations with the CWA to finalize agreements throughout Xbox."

In 2022, Microsoft reached a labor neutrality understanding with the CWA while working on the acquisition of Activision Blizzard. The union endorsed the acquisition, ensuring employees have "a seat at the table."

Bloomberg reported in June that Xbox might undergo layoffs as new CEO Asha Sharma seeks to steer the business in a new direction. There are considerations about shutting down Compulsion Games, with Double Fine and Ninja Theory also potentially affected. According to The Verge, Ninja Theory is searching for a buyer.

Recently, Double Fine joined the ranks of unionized Microsoft subsidiaries.

The Information reported that Microsoft is exploring the possibility of spinning off the Xbox division as a separate entity or retaining it as a wholly-owned subsidiary, with the potential for a sale under consideration.