The Power of Unity: Diablo Developers Unionize in Response to Microsoft’s Layoffs

In a landmark moment for the video game industry, over 450 developers from Blizzard’s Diablo team have successfully voted to unionize. This collective action, a direct response to a series of widespread layoffs and growing job insecurity at Microsoft, signals a new era of worker activism within the gaming sector. The union, formed with the Communications Workers of America (CWA), includes a broad range of employees, from engineers and artists to designers and support staff, highlighting a unified front against what many are calling the “instability of a passion-fueled industry.”

The union drive was heavily fueled by recent events at Microsoft. In June 2025, the tech giant announced a significant round of layoffs, cutting approximately 9,000 jobs across its gaming division, including at newly-acquired studios like Activision Blizzard. The cuts were described as “organizational changes” to “align resources” for the future, but for many employees, they were a chilling reminder of their lack of job security. The layoffs followed the cancellation of several high-profile projects, including the long-awaited Everwild and a new multiplayer-focused The Last of Us game, leaving many developers in a state of fear and uncertainty.

For the Diablo team, the unionization effort was about more than just a single layoff event; it was a rejection of the “passion tax” — the long-held industry expectation that developers should accept low pay and poor working conditions in exchange for the privilege of working on games they love. “With every subsequent round of mass layoffs, I’ve witnessed the dread in my coworkers grow stronger because it feels like no amount of hard work is enough to protect us,” stated game producer Kelly Yeo, a member of the organizing committee. She added that the union is “just the first step” in a larger movement aimed at creating a more stable and equitable industry.

Microsoft’s Response and the Broader Union Movement

In a positive sign for the newly formed union, Microsoft has formally recognized the group, adhering to a labor neutrality agreement it made with the CWA back in 2022. This agreement has been a key factor in the recent surge of unionization across Microsoft’s gaming studios. The Diablo team joins a growing list of organized workers, including developers from World of Warcraft, Overwatch, and various teams at ZeniMax Media. Over 3,500 Microsoft workers are now represented by CWA, and the number is expected to grow as more employees seek job security in the volatile market.

The success of the Diablo union highlights a fundamental shift in the video game industry. Developers are no longer willing to accept the constant threat of layoffs and crunch culture as an inevitable part of their work. They are organizing to have a voice in decisions that affect their livelihoods, from fair compensation and layoff protections to issues surrounding the use of AI in game development. The goal is not just to protest, but to negotiate. Workers at other unionized Microsoft studios have already successfully bargained for better severance packages and improved working conditions, setting a powerful precedent for the Diablo team’s upcoming contract negotiations.

The unionization of a large, high-profile team like Diablo is a major blow to the old guard of the industry, which has long resisted unionization efforts. It demonstrates that the demand for worker protections is not limited to smaller, less-known studios, but extends to the very heart of the AAA gaming world. It also puts pressure on other major publishers to follow suit, as their employees watch and learn from the successes of their unionized peers. The movement is now a nationwide phenomenon, with new unions forming in key development hubs across the United States. For gamers and developers alike, this movement promises a future where passion and profession can coexist, built on a foundation of respect and security rather than fear and instability.