It’s been a day since Microsoft aimed a cannon at its own foot and laid off 1,600 workers—with another 1,600 to come at some point in the next year—but the dust is still settling. While the company separated from several studios, massive cuts also hit Zenimax, Bethesda, Obsidian, Activision, and id Software. Blizzard, meanwhile, seemed to be safe, but as it turns out, that’s not entirely true. CWA, the union responsible for organizing thousands of Microsoft workers, has vowed to fight back.
Today Blizzard employees received an email from president Johanna Faries (shared with Aftermath) revealing that layoffs impacted its China-based operations:
As a follow up to my previous email, yesterday we consolidated a very small number of roles on our team in China to better align with the evolution of our operating model in the region. These changes serve to continue to strengthen our regional publishing and product management capabilities going forward. I want to acknowledge the employees who were notified of this change and the contributions they each have made to Blizzard and to our players in China. We are currently prioritizing their transition support. Thank you for your patience while the members of that team were informed directly.
The broader XBOX actions announced yesterday can be challenging to navigate. At Blizzard, our forward-looking strategic initiatives and priorities remain in focus. Thank you again for the respect and care you have shown for our games, communities, and each other throughout.
Since yesterday, specific impacts of layoffs on Obsidian and id Software have also come to light, with Kotaku reporting that the former is losing 25 percent of its staff—corroborating what Aftermath has heard—while current employees tell Aftermath that id Software is losing 90 members of its union bargaining unit plus several additional people in management, totaling out to “about half the studio.”
“Today was actually the launch of our DLC for Doom: The Dark Ages,” a current id employee told Aftermath. “What was supposed to be a celebratory day after a long effort including significant crunch is now largely a day of mourning. Entire teams have been gutted or even outright eliminated, with institutional knowledge lost that can't be replaced. I don't even know our ability to put out fixes for today's launch if they are needed, let alone new projects.”
“All but one person who helped run all our old titles was let go,” they added. “Passionate fans of id since before working there trying to keep our legacy alive now won't be able to do so, and for some that has been as painful as the job loss itself.”
CWA, which was bargaining with Microsoft over contracts and layoffs protections until the eleventh hour, plans to push back in every way it’s able.
“Our union will take all necessary legal and contractual action to defend our members and their rights,” said Mike Davis, vice president of CWA District 2-13, in a statement received by Aftermath. “We will demand immediate bargaining—over fair severance, over vendor-contract decisions, over internal placement so that qualified employees can move into open roles, and over recall rights. That’s the difference a union makes. Organized workers have a seat at the table on the decisions that affect their lives and families, and that includes layoffs.”
Microsoft has spent the past couple years stalling out contract negotiations with many of its studios’ unions, even as they’ve continued to multiply, resulting in demonstrations outside the headquarters of companies like Blizzard. It is unlikely that the relationship between Microsoft and unionized workers will become less contentious anytime soon.
“Although our union signed neutrality agreements with Microsoft, we have been extremely disappointed by a company that has slow-walked our members at the bargaining table, making CWA members wait for the protections of a union contract,” CWA president Claude Cummings Jr said in a statement. “But make no mistake: whether our members have a contract in hand, or are still at the bargaining table, CWA members at Xbox have the power and protection of union membership. When Microsoft decides to treat the workers who built Xbox as expendable, it should know who they’re dealing with. This is not just a fight with the thousands of workers across Xbox; it’s a fight with each and every member at CWA—hundreds of thousands of people strong.”
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Nathan Grayson
