Dozens of video-game workers rallied in Montreal on Wednesday to protest mass layoffs at Microsoft, alleging the tech giant used workforce reductions to interfere with ongoing collective bargaining. The demonstration follows Microsoft’s decision to cut 1,600 jobs within its Xbox division, a move union organizers claim targets staff during sensitive contract negotiations.
Labor Disputes and Allegations of Interference
Workers at the protest, including former Bethesda Game Studios developer Simon Préfontaine, argue that the timing of the layoffs is not coincidental. According to Préfontaine, who was laid off after nine years at the studio, these cuts undermine the collective bargaining process protected under labor laws. Bethesda Game Studios employees, represented by the Game & Media Guild of Canada—a branch of CWA Canada—began negotiating their first collective agreement in February 2025.
Nasr Ahmed, a CWA Canada organizer, asserts that companies are using restructuring as a tool to stall or weaken union efforts. “There are labour laws on the books that protect workers from companies essentially trying to drag their feet in collective bargaining,” Ahmed stated. He alleges that Microsoft is employing these tactics both in Montreal and at Bethesda Game Studios around the United States. Microsoft did not provide a comment to The Gazette regarding the specific allegations of bargaining interference.
Did you know?
Bethesda Game Studios was among the first video-game companies in Canada to unionize, officially joining CWA Canada in 2024.
Industry-Wide Trend of Tech Layoffs
The situation at Microsoft is part of a broader contraction within the Canadian tech and gaming sectors. Union organizers point to a pattern of closures and layoffs affecting unionized or organizing workplaces:
- Ubisoft: Closed its Halifax office in January weeks after unionization and shuttered its Winnipeg studio in June.
- Behaviour Interactive: The Montreal-based Dead by Daylight developer has reportedly implemented multiple rounds of layoffs since 2024, including a round in April.
- Amazon: Closed facilities in Quebec early last year shortly after a warehouse in Laval decided to unionize.
Financial Performance vs. Workforce Reductions
A central point of contention for organizers is the disconnect between corporate profitability and job cuts. While Microsoft has not publicly disclosed the specific financial reasoning for the Xbox division layoffs, the company reported a net income of $101.8 billion in its 2025 annual report—a 15.5 per cent increase over the previous year.
Préfontaine noted that the Xbox division has not cited financial losses, only that it failed to hit internal goals. For workers, the focus remains on securing severance and fighting for job stability. “I’m a single dad with a mortgage,” Préfontaine said. “I could really use a job.”
Pro Tip:
If you are currently working in the tech sector, familiarize yourself with your local labor board’s regulations regarding “good faith bargaining” to understand how contract negotiations are protected during corporate restructuring.
Frequently Asked Questions
Why are Bethesda workers protesting in Montreal?
Workers are protesting to denounce mass layoffs at Microsoft, which they allege are being used to interfere with their first collective bargaining agreement. They argue that these cuts violate labor protections designed to prevent management from manipulating the bargaining process.
Is Microsoft the only company laying off staff in Canada?
No. Several major companies, including Ubisoft and Amazon, have shuttered Canadian offices or reduced staff, sometimes shortly after workers moved to unionize.
What does the union want from Microsoft?
Organizers are advocating for the reinstatement of laid-off employees and are demanding “decent severance” packages for those who cannot return to their roles, citing a difficult job market.
Have you been affected by recent shifts in the tech industry? Share your perspective in the comments below or subscribe to our newsletter for ongoing coverage of labor rights in the digital economy.
Worth a look
