The Bethesda Game Studios Union (OneBGS) has publicly challenged Microsoft and Bethesda management over the handling of recent layoffs at the company’s Montreal branch. According to the union, employees were informed of their termination via email on July 17, the same day Bethesda shared updates regarding the future of the Fallout series and other major titles.

Quick Facts

  • Layoff Notification: Employees were first notified of layoffs on July 6 via video call, with an initial understanding that they would remain employed until September while severance terms were negotiated.
  • Severance Terms: On July 17, the union claims affected staff received termination letters offering only the bare legal minimum: eight weeks of pay in lieu of notice and outstanding vacation pay.
  • Benefits: Impacted staff were notified that their group health insurance coverage would be terminated immediately.
  • Legal Action: OneBGS has filed a formal complaint, alleging that Bethesda and Microsoft violated Canadian labor laws by failing to negotiate severance terms with the union.

Union Response to Management

In a statement posted to Bluesky, the OneBGS union characterized the treatment of Montreal workers as an attempt to avoid bargaining. Lead character artist Ben Carnow echoed these claims, noting that the lack of negotiation and the immediate loss of healthcare were "unconscionable" actions taken by Microsoft.

The union has explicitly linked these personnel decisions to broader management issues, stating, "The cycle of workers paying for the mistakes of management ends here." They have encouraged staff and community members to engage with Microsoft’s "Player Voice" forum to demand executive accountability, specifically calling for an end to executive bonuses during periods of layoffs.

Timing and Industry Context

The United Videogame Workers CWA (UVW-CWA) has publicly questioned the timing of Bethesda’s July 17 announcements regarding the Fallout franchise and The Elder Scrolls. The organization suggested that the promotion of these upcoming games served to distract from the staff reductions taking place within Bethesda and Obsidian Entertainment. The union maintains that the industry's focus on future project roadmaps should not overshadow the impact of these layoffs on the developers who build these titles.

As of this report, the legal complaint remains active as the union continues to challenge the conditions of the termination process in Canada.