A union criticizes Microsoft for alleged "unfair labor practices," claiming that Xbox conducted "unlawful" layoffs.

Claims have been made that Xbox dismissed employees "illegally" without prior notification or dialogue with recognized labor unions.

According to the National Labor Relations Board (NLRB) website and a report by Game Developer, a charge has been lodged against Microsoft and its affiliates, such as Xbox, ZeniMax Media, Inc., id Software, and Bethesda Game Studios. The charge alleges that they did not provide necessary information to the Communications Workers of America (CWA) union.

The announcement of significant job reductions at Xbox, made on July 6, followed weeks of rumors. The announcement included the elimination of 3,200 jobs, or around 20% of the company's workforce, communicated through an internal memo later shared on X. Moreover, CEO Asha Sharma disclosed that five studios would be divested.

In a recent complaint, the CWA accused Microsoft of contract breaches, unwillingness to provide information, and bad faith bargaining tactics like surface bargaining and coercive measures such as surveillance.

CWA Canada president Carmel Smyth told Game Developer: "The CWA and CWA Canada have filed complaints alleging Microsoft terminated employees without union consultation during ongoing collective bargaining, a violation of legal obligations."

"Employers cannot unilaterally alter working conditions during union negotiations. We will continue to pursue legal avenues to protect the rights of Bethesda Game Studios employees," Smyth added.

An Xbox representative stated to Game Developer, "We honor our employees' rights to express themselves and acknowledge the challenges many face currently. We've reached out to the union to initiate effects bargaining and are committed to that process. Our focus is on assisting affected employees during this transition while maintaining the organization's long-term viability."

This situation is not unique, as comparable actions from other unions have been observed.