Microsoft has come under fire from a union for allegedly engaging in "unfair labor practice," asserting that the company "unlawfully" dismissed employees from its Xbox division

Allegations have been made against Xbox, accusing them of laying off staff without proper notice or dialogue with affiliated unions.

According to a charge filed with the National Labor Relations Board (NLRB) and covered by Game Developer, Microsoft and its subsidiaries, such as Xbox and Bethesda Game Studios, have been accused of not providing essential details to the Communications Workers of America (CWA).

On July 6, significant job reductions at Xbox were officially announced, confirming the dismissal of 3,200 employees, equating to about 20% of the workforce. This information was released through an internal memo shared on X. Asha Sharma, the CEO, indicated that five studios would be divested.

Recently, the CWA filed a new complaint alleging Microsoft's breach of contract, reluctance to provide necessary information, refusal to negotiate fairly, and other practices like surveillance. CWA Canada president Carmel Smyth told Game Developer that the allegations involve dismissing employees without notifying or consulting the union amid ongoing negotiations, which legally should not happen.

Smyth emphasized that employers should not alter working conditions unilaterally during discussions with the union. The CWA intends to continue challenging any future infringements legally.

Responding to these developments, Xbox stated to Game Developer: "We value our employees' rights to voice their opinions and acknowledge these are challenging times for many. We've reached out to the union to start effects bargaining and are committed to this process. We're dedicated to aiding the affected employees during this transition while fortifying our organization's future strength."

Earlier, other unions had also taken action. Members at Bethesda Game Studios initiated a strike after layoffs affected hundreds of employees, including 96 at id Software, 40 remote staff at BGS Dallas, 22 at BGS Austin, 213 at ZeniMax Online Studios in Maryland, and 166 at ZeniMax Media.