Unions File Labor Charges Against Microsoft Over Game Division Layoffs

The Communications Workers of America and CWA Canada filed unfair labor practice charges against Microsoft and its subsidiaries, including Xbox and ZeniMax Media, on July 15, 2026. The legal action follows a mass layoff of 3,200 roles within the company's video game division that began on July 6.

The unions allege that Microsoft unlawfully terminated employees without providing notice, engaged in bad faith bargaining, and withheld necessary information during negotiations for a collective agreement. CWA Canada specifically accused the company of unlawful oustings at Bethesda Game Studios in Montreal, asserting that the employer cannot arbitrarily change working conditions while engaged in union negotiations.

In response, Microsoft stated it respects the right of employees to be heard and remains committed to the effects bargaining process. Meanwhile, workers organized Save Our Devs rallies to protest the redundancies, staging demonstrations at Microsoft's headquarters in Redmond and ZeniMax's offices in Rockville.