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Unions Take Legal Action Against Microsoft For Allegedly Mishandling Xbox Layoffs

Harold Phillips | Published on 7/19/2026

Labor unions in the United States and Canada have filed unfair labor practice (ULP) charges against Xbox maker Microsoft for allegedly mishandling its latest round of mass layoffs.


As noted on the National Labour Relations Board (NRLB) website, a ULP charge has been filed against Microsoft and subsidiaries including Xbox, ZeniMax Media, Inc, id Software, Bethesda Game Studios and more for allegedly failing to provide information to labor union Communications Workers of America (CWA) and engaging in bad faith bargaining.


The union claims Microsoft also engaged in "coercive actions" and modified employee contacts by making "unilateral changes." The CWA filed the UILP against Microsoft and numerous Xbox subsidiaries on July 15, 2026.


CWA Canada also intends to take legal action and has accused Microsoft of "unlawfully" ousting employees at Bethesda Game Studios Montreal.


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