Fallout Drama: Bethesda Faces Union Backlash Over Layoffs
The Bethesda Game Studios Union is taking a stand against Bethesda after some unsettling news. They’re filing a legal complaint, claiming the company has been flouting labor laws in Canada. This comes after the studio laid off Canadian employees on July 17, the same day they dropped a bombshell announcement about the future of the Fallout series and other titles.
The timing of Bethesda’s big news was definitely eyebrow-raising. Just a couple of weeks after Xbox revealed massive layoffs affecting 3,200 employees and shutting down four studios, Bethesda decided to announce remasters for Fallout 3 and New Vegas, along with confirmation that Obsidian is working on another Fallout title and that Fallout 5 is in the early stages of development. While fans were thrilled, it felt a bit like a distraction from the reality of job losses.
The OneBGS union hinted that this announcement was more of a smokescreen, arguing that Bethesda flooded the media with news of expansions, remakes, and sequels while blindsiding their Montreal team with sudden layoffs. They terminated employees months earlier than originally promised, without any severance discussions.
On July 6, dozens of Bethesda employees from both the US and Canada were informed through a video call about their layoffs. They were assured they would remain employed until September while the company negotiated severance with the union, which at least provided them some hope. However, by the end of the day on July 17, those Canadian employees received termination emails that contradicted what they had been told, stating they would only receive the minimum severance pay along with the immediate loss of health benefits.
The union expressed outrage, stating, “Bethesda Games Studios’ Montreal workers are being treated especially poorly by Xbox, and we won’t stand for it.” They encouraged those who feel similarly to voice their concerns to Microsoft.
Prior to the layoffs, the Communications Workers of America and CWA Canada unions had already filed a complaint against Microsoft. CWA Canada president Carmel Smyth noted that Microsoft had acted unlawfully by laying off employees without proper notice or discussion with the union, which is required during ongoing contract negotiations. Smyth emphasized that the union would challenge Microsoft legally as needed, and OneBGS has followed through with that commitment.
In a message to their followers, the union highlighted that workers deserve better treatment, stating, “Bethesda and Xbox leadership depend on our labor to make them millions, and yet when we do, we are disposed of. The cycle of workers paying for the mistakes of management ends here.” The situation continues to unfold, and many in the gaming community are watching closely to see how Bethesda and Xbox respond.