OneBSG, the union that represents workers at game studio Bethesda, has filed a lawsuit against Bethesda, claiming it violated Canadian labor laws by firing employees in Montreal. In an article on Bluesky, OneBSG claimed that workers were initially told they would remain employed “until September while the company negotiated their termination with our union,” only to have the company send termination letters at the end of that week that offered “the bare minimum legal severance.”
The Montreal employees of Bethesda Games Studios are being treated particularly poorly by XBOX and we will not tolerate it. Here are the details.
If this bothers you, let Microsoft know: feedbackportal.microsoft.com/feedback/ide…
– OneBGS – Bethesda Game Studios Union (@bethesdaunion.bsky.social) 2026-07-22T14:50:07.511Z
Bethesda has made deep budget cuts as part of Xbox’s sweeping plans to lay off more than 3,000 people starting this summer. The studio creates several popular game franchises and explained what fans can expect from future Fallout and Elder Scrolls titles after the cuts.
This is not the first legal action against Xbox and parent company Microsoft, which has cut its workforce. Microsoft has previously been accused of bad faith bargaining by the Communication Workers of America on behalf of employees in the United States and Canada.
