'One flag for each laid off dev:' Union workers stage unmissable protest for Xbox boss Asha Sharma

The centerpiece of the protest was a giant inflatable rat known as 'Scabby'—a reference to derogatory terms for union saboteurs—and a sea of red flags. Each flag symbolizes one employee laid off from Xbox under Sharma's leadership.

According to Nathan Hahn, a CWA union member, the protest aims to force Microsoft leadership to reckon with the human cost of mass layoffs, which have become the norm in the industry. Staff previously attempted to place posters but were told they could not face outward; they then used balloons before deploying the flags outside.

In July, Asha Sharma confirmed plans to eliminate 3,200 jobs across Microsoft's video game division by the end of the current fiscal year. This marks the fifth round of mass layoffs in three years, affecting studios including Obsidian, id Software, and ZeniMax Online Studios. Laid-off staff include developers, artists, engineers, producers, user researchers, and customer support personnel behind major franchises like Call of Duty, Overwatch, and World of Warcraft.

The CWA has already taken legal action against Microsoft, alleging unlawful firings without notice. Further rallies are scheduled for August 18, 2026, at Xbox studios in Irvine, Austin, Dallas, Seattle, Albany, Rockville, Hunt Valley, Montreal, and Minneapolis.