Union accuses Xbox of 'unlawfully' laying off staff without notice, prompting legal action.
Xbox has been accused of 'unlawfully' laying off staff without giving notice to, or discussing it with, recognized unions. A ULP charge has been filed against Microsoft and its subsidiaries, including Xbox, ZeniMax Media, Inc, id Software, Bethesda Game Studios, for allegedly failing to provide information to labor union Communications Workers of America (CWA). The sweeping job cuts at Xbox were announced on July 6, resulting in the loss of 3,200 staff, around 20% of the organization. CEO Asha Sharma confirmed that five studios were to be divested. The CWA accused Microsoft of repudiation/modification of contract, refusal to furnish information, refusal to bargain/bad faith bargaining, and coercive actions, such as surveillance. CWA Canada president Carmel Smyth highlighted that the employer is legally obliged to inform and discuss with the union during ongoing bargaining for a collective agreement. Xbox stated that they respect employees' rights to voice concerns and are committed to effects bargaining with the union, focusing on supporting impacted employees and ensuring long-term organizational strength.
