Developers at Bethesda’s Rockville, Maryland office have staged a protest against recent mass layoffs by greeting Xbox leadership with a giant inflatable rat, a symbol often used by union organizations known as "Scabby." The demonstration coincided with a visit from Xbox CEO Asha Sharma.
Members of the Bethesda Game Studios Union (OneBGS-CWA) also planted 800 red flags outside the office. Each flag represented one of the employees laid off since July 2025. "Each flag was a public reminder of how many people management cut from our teams – not just our colleagues and coworkers, but our friends at the end of the day," stated Nathan Hahn, a technical director and union member. Inside the office, employees displayed posters outside their cubicles, which were later replaced with balloons after management reportedly asked for the posters to be removed. "We heard that Microsoft leadership was coming to our office this week, and decided to make our presence visible at the office to show how our developers have been impacted by these devastating layoffs," Hahn added.
These actions come in the wake of Xbox announcing approximately 3,200 employee layoffs as part of a "great reset" aimed at returning the company to profitability. The gaming organization has experienced multiple rounds of layoffs, project cancellations, and studio closures. Previously Xbox-owned studios Double Fine and Compulsion Games have been spun off as independent entities, both implementing layoffs. The future of Ninja Theory, Undead Labs, and Arkane Lyon remains uncertain, with reports suggesting Ninja Theory and Undead Labs are slated for acquisition, while Arkane Lyon is exploring strategic options.
The ongoing layoffs have significantly disrupted the remaining development teams. In response, Xbox workers, in conjunction with the Communications Workers of America, plan to hold rallies across the U.S. and Canada on August 18th. These protests aim to challenge the layoffs and advocate for fair contracts that include layoff protections for union members. "We’re mobilizing to fight back against these layoffs not just to ensure impacted XBOX devs and testers get treated fairly, but to remind our company and game studios everywhere that layoffs like this cannot continue," Hahn said.