Employees at Bethesda's Montréal studio have been informed they will receive the minimum legally permissible severance pay and lose access to group benefits immediately following recent mass layoffs at Xbox. The union representing these workers, OneBGS, has described the exit package as the "smallest severance legally possible without bargaining with the union."
According to OneBGS, employees were notified of their termination on July 17th, contrary to assurances given in a July 6th video call. During that call, employees were reportedly told they would remain employed until September and that severance negotiations were underway with the union.
Instead, the termination emails detailed an offer of eight weeks' pay in lieu of notice and any accrued vacation pay. OneBGS has characterized this as the "bare legal minimum in terms of severance." The union also stated that employees would "immediately" lose access to their group benefits and health insurance.
In response, OneBGS has filed a legal complaint against Bethesda, alleging violations of Canadian labour laws. The union declared on social media, "Bethesda and Xbox leadership depend on our labour 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."
These events follow a broader wave of layoffs across Microsoft-owned studios, impacting a total of 3,200 employees. Reports indicated that even major upcoming projects, such as The Elder Scrolls 6, were not immune to these workforce reductions. In protest, OneBGS announced a march, stating, "We mean business."
Canada's robust labor laws may provide OneBGS with significant grounds to advocate for its members if Microsoft has indeed contravened the rights of unionized workers. The outcome of this dispute could set a precedent for how Microsoft handles such situations in the future.