Bethesda Game Studios staff protest Microsoft Xbox layoffs, demand better severance

Microsoft announced a restructuring of its Xbox division that led to layoffs across its acquired studios, including Bethesda Game Studios, id Software and ZeniMax Online Studios. WARN notices indicate 379 employees were terminated in Maryland and Texas, with additional cuts at the Montreal office.

The Bethesda union, OneBGS, has organized a "Save Our Devs" march for July 15 outside the studio's locations in Rockville, Austin, Dallas and Montreal, calling for stronger severance, extended health benefits and hiring priority for laid‑off workers. Union leaders say the layoffs threaten morale and could delay upcoming titles such as The Elder Scrolls 6, with staff fearing increased reliance on contracted labor and potential crunch periods.