Bethesda faces labour law allegations over Montreal redundancies

OneBSG, the union representing staff at Bethesda’s Montreal studio, has lodged a legal complaint alleging that the company breached Canadian labour laws during recent redundancies. The union contends that employees were misled regarding their employment status, having been told they would remain on payroll until September while severance was negotiated, only to receive termination letters offering the statutory minimum.

The allegations were detailed by the union on the social media platform Bluesky, where it described the treatment of Bethesda Games Studios’ Montreal workers as particularly poor by Xbox. OneBSG stated that after being assured of continued employment, staff instead received termination letters at the end of that week which provided only the bare legal minimum in terms of severance.

These cuts are part of a wider Xbox restructuring initiative affecting over 3,000 roles globally. The downsizing began in the summer, impacting several popular game franchises including Fallout and The Elder Scrolls. While the specific number of employees affected in the Montreal studio is not detailed in the source material, the global scale of the reductions underscores the magnitude of the corporate overhaul.

This incident follows prior accusations against Microsoft and Xbox regarding bad faith bargaining during employee reductions in the US and Canada. The Communication Workers of America has previously raised concerns with the parent company over its handling of staff cuts in those jurisdictions, adding to the regulatory scrutiny surrounding the tech giant’s labour practices.

In its public statement, OneBSG urged users to contact Microsoft via its feedback portal to express concern over the handling of the Montreal layoffs. The legal complaint remains an allegation and has not yet been adjudicated or proven in court, with the outcome and any potential penalties or settlements remaining unknown.