Microsoft is cutting 3,200 jobs across its Xbox division, a move that reshapes the stability of game development teams and signals a shift in how the company manages its growing gaming portfolio. This reduction affects not only internal Xbox studios but also Bethesda, where workers report a stark change from the tenure-focused culture that existed before the acquisition. For players and industry observers, these layoffs highlight the human cost of corporate consolidation in the gaming sector.
Bethesda workers rally against Microsoft's new yearly layoff tradition
The cuts follow an initial phase that eliminated 1,600 positions, with the remainder of the reductions expected to occur before mid-2027. This timeline suggests a prolonged restructuring period rather than a single event. Workers at Bethesda, which Microsoft acquired through its purchase of ZeniMax Media, have organized coordinated rallies to protest the changes. These actions reflect growing tension between the workforce and the new corporate leadership structure.
On August 18, Bethesda workers held 'Save Our Devs' rallies in nine cities across the United States and Canada. The protests were organized by the OneBGS union and the Communications Workers of America (CWA). Alex Nguyen, a lead character artist at Bethesda, described the shift in workplace culture, stating, 'We didn't have layoffs before, and now… we have yearly layoffs.' This quote underscores the contrast between the previous era of stability under ZeniMax and the current environment.
The CWA has filed an unfair labor practice complaint with the National Labor Relations Board regarding Microsoft's bargaining obligations. The union represents nearly 4,000 employees across the Microsoft Gaming division, including developers and support staff on major franchises. These legal and organizational efforts aim to address the rapid changes in employment conditions. The situation remains active as the company proceeds with its restructuring plans.
Source: NotebookCheck
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