- Microsoft announced a workforce reduction of 3,200 people for fiscal year 2027, which includes 1,600 immediate layoffs and the spinning out of four studios.
- The CWA has filed unfair labor practice charges with the NLRB, alleging bad faith bargaining and coercive action by Microsoft.
- Union leaders and members are pushing for a contract that emphasizes severance and job security for affected employees.
- Unionization efforts began due to changes at Bethesda and fears of layoffs under Microsoft.
- ZeniMax has reaffirmed its commitment to labor principles and to reaching an agreement with the CWA.
Austin game developers are pushing for a union contract amid Microsoft’s recent layoffs affecting 3,200 employees, which the Communications Workers of America (CWA) claims are illegal. The layoffs, part of a corporate restructuring, included about 1,600 immediate job cuts and the spinning out of four studios.14
“Part of the reason that we had unionized was because we had seen changes in the way that Bethesda was,” explained Barrett, expressing fears over Microsoft’s handling of the layoffs. The union, representing 300-350 Microsoft employees in Austin and Dallas, is focused on securing the best severance for affected workers.3
Negotiations for a union contract have been ongoing for three years, with Local 6215’s vice president, Alex Doblado, emphasizing the need for a safe working environment. “The biggest thing is just to make sure that our workers are safe,” he stated. Following the layoffs, the CWA filed unfair labor practices against Microsoft, alleging bad faith bargaining and coercive actions during negotiations.2
David Marshall, an executive vice president with Local 6215, argued that Microsoft “cannot arbitrarily change working conditions while it’s engaged in negotiations with the union.” In response, a ZeniMax spokesperson stated their commitment to maintaining a respectful relationship with the CWA and reaching an agreement that supports impacted colleagues.5
Laid-off employees were reportedly offered severance terms comparable to non-union workers, including severance for up to 39 weeks and 16 weeks of outplacement support.
“The union represents 300-350 Microsoft employees in Austin and Dallas, with negotiations dating back three years. Laid-off workers were offered severance up to 39 weeks, but union leaders argue the layoffs were illegal while bargaining was ongoing.”
