Austin Game Developers Push Back Against Xbox Layoffs Amid Union Contract Talks

Austin-based game developers at Bethesda Game Studios, known for video games like The Elder Scrolls and Fallout, are pushing for a union contract amid Microsoft's Xbox layoffs. In July, Xbox CEO Asha Sharma announced a workforce reduction of 3,200 people throughout fiscal year 2027, including about 1,600 immediate layoffs.

One of the affected employees is Anne Barrett, who joined Bethesda in 2019 as a game programmer and serves as a member of CWA Local 6215. The union represents 300-350 Microsoft employees based between Austin and Dallas.

Barrett explained that part of the reason for unionizing was fear of changes under Microsoft's ownership, including potential layoffs. 'We were afraid of what Microsoft and Xbox were going to do to the company,' she said.

The CWA has filed unfair labor practices against Microsoft, alleging 'bad faith bargaining' and 'coercive action.' The National Labor Relations Board filing claimed the layoffs were illegal and that Microsoft cannot arbitrarily change working conditions while negotiating with the union.