Gaming

'Used, abused, and discarded:' CWA Canada slams Microsoft over handling of Bethesda layoffs

Jul 08, 2026 | 5 min read

The union claims around a dozen roles have been eliminated at Bethesda Game Studios Montreal.

Labor union CWA Canada has informed Game Developer that around a dozen employees have been laid off at Bethesda Game Studios Montreal following the latest round of job cuts at Xbox. All were union members.

It's claimed those impacted were told during a short, three-minute video call, where they were prevented from asking questions and told to stay at home for the next eight weeks. They will continue to receive pay over that period.

CWA Canada president Carmel Smyth explained those who lost jobs had been working at Bethesda for up to a decade. She said employees have described the current situation at Xbox—which has confirmed 3,200 roles will be eliminated by the end of the current fiscal year (half of which are yet to be announced)—as tantamount to psychological warfare.

That's despite a manager at Bethesda Game Studios Montreal reportedly telling staff there will be no additional cuts at the studio.

"Workers say its like having a 'sword hanging over your head' or psychological warfare and predict even those not laid off now will already be looking for other jobs. Morale, work and game quality will absolutely be affected," she added.

"The instability highlights a major problem with this industry, even though game use and consumer demand is consistently high, employers are ruthless. Microsoft employees believe 'you only leave Microsoft if you quit or are laid off, only managers get to stay for a career and retire.'"

Smyth said Bethesda Game Studios Montreal workers were "used, abused, and discarded" in the span of three minutes after "giving years" to the studio.

"Your creations make millions of dollars globally then overnight a boss tells you 'thanks, stay home, we don't need you.' How is it okay that one of world's richest employers comes to Canada and treats people like that?" she continued.

The U.S. branch of CWA has also pledged to take "all necessary legal and contractual action" to defend members caught up in the Xbox purge.

"We will demand immediate bargaining—over fair severance, over vendor-contract decisions, over internal placement so that qualified employees can move into open roles, and over recall rights," said Mike Davis, vice president of CWA District 2-13, in a statement to Aftermath. "That’s the difference a union makes. Organized workers have a seat at the table on the decisions that affect their lives and families, and that includes layoffs.”

It's still unclear how severely individual teams and studios within Xbox have been impacted by the cuts. Yesterday, we reported that Doom: The Dark Ages developer id Software has been scythed in half. In addition, social media posts from (now former) Xbox employee indicate that ZeniMax Online Studios has been hit hard.

Kotaku ís also reporting that between 60 to 70 people have been let go at Grounded and Pentiment developer Obsidian Entertainment.

Game Developer has reached out to Microsoft for comment.

If you're an Xbox employee impacted by this story and would like to share your views confidentially, you can email our news editor Chris Kerr or contact him on Signal (kerrblimey.43).

Game Developer news editor Chris Kerr is an award-winning reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton.

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Source: Chris Kerr · https://www.gamedeveloper.com/business/-employers-are-ruthless-cwa-canada-slams-microsoft-over-handling-of-bethesda-layoffs