‘Are we next?’ Wizards of the Coast employees move to unionize over layoffs, AI fears

Game developers of Magic: The Gathering, a digital trading card game, are planning to form a union due to concerns over industry layoffs and return-to-office mandates.

Employees of the Renton-based Wizards of the Coast (WOTC) game studio announced Monday that they will unionize in affiliation with the Communications Workers of America, according to The Seattle Times.

The decision to unionize stems largely from WOTC’s 2025 layoffs, which came as a shock to many game designers, artists, and programmers who, up until that point, believed they were excelling in their respective roles.

“Essentially, everything we had heard up to that point was we were doing great, everything was super successful, and Magic: The Gathering was making a ton of money,” Xib Vaine, a WOTC game producer, told The Seattle Times. “And then the layoffs hit.”

Renton game studio employees cite layoffs, return-to-office mandate as driving factors to unionize

The video game industry has been hit with increased layoffs over the last few years, partially due to the rise of funds being directed toward artificial intelligence and overhiring during the pandemic.

Higher costs to develop these games have also contributed to studio closures and project cancellations across the industry. Recently, a survey from the Game Developers Conference concluded that one-third of the industry’s employees nationwide were laid off in the past two years.

WOTC has also fallen victim to the recent industry trend of downsizing. Approximately 30 employees working on the virtual game “Sigil” were laid off in March 2025. Before that, WOTC’s parent company, Hasbro, cut roughly 1,100 positions due to decreased sales. Hasbro’s layoffs represented about a fifth of its workforce at the time, according to The Seattle Times.

WOTC moved forward with its layoffs despite posting revenue growth of 45% in 2025, primarily sourced from the company’s growth in Magic: The Gathering and licensed digital gaming. Strong performance in those sectors helped Hasbro boost profitability and revenue while other departments reported losses.

Vaine noted that employees remain on edge over potential layoffs despite the company’s strong financial performance, and cited last year’s return-to-office mandate as “adding fuel to the fire.”

“It feels like a sword of Damocles just looming over us. We’re constantly living in fear of, ‘OK, are we next?'” Vaine told The Seattle Times. “It feels like no matter how well we do, that fear will always be there if we don’t unionize or protect ourselves.”

Artists fear AI pressure as engineers report burnout from new technology

Mirroring a trend seen across major tech companies, WOTC’s return-to-office mandate required remote employees to either relocate near its Renton office or resign altogether.

Employees seeking unionization have also asked WOTC to implement an in-depth AI policy, as many employees have claimed the company urged them to use the technology.

Vaine confirmed that WOTC’s artists aren’t using the AI technology, but are worried that the company may pressure employees to test it, similar to the company’s approach with its software engineers, according to The Seattle Times.

A senior software engineer with WOTC, Damien Wilson, noted that the company has urged engineers to use agentic AI as a means to increase their output.

“The burnout is real,” he said. “A lot of people are struggling to stay in software.”

Additionally, WOTC’s unionizing employees have sought creative rights for the projects they create off-the-clock, sustainable workloads, and defined career progressions.

An election petition has already been filed with the National Labor Relations Board, according to the news release obtained by The Seattle Times.

Follow @http://twitter.com/Mynorthwest