Microsoft faces unfair labour practice charges in the United States and Canada after Xbox announced extensive job cuts and studio changes. The Communications Workers of America alleges the company bargained in bad faith, acted coercively, repudiated contracts and failed to give employees adequate notice, raising wider concerns about job security and union rights in the games industry.

Xbox said on 6 July it would immediately cut 1,600 jobs and planned a further 1,600 reductions during the financial year, alongside 3,200 cuts elsewhere at Microsoft. The changes affected major studios including Activision, Blizzard, Bethesda and Mojang; Microsoft also sold four Xbox studios, while Arkane is reportedly at risk of closure. CWA represents hundreds of Xbox staff in the US and Canada, including Bethesda workers in Montreal, and union members held protests calling for transparent negotiations and the reinstatement of affected workers.