Bethesda One BSG, the union representing workers at Bethesda's Montreal studio, has filed a legal complaint alleging that the company violated Canadian labor laws during recent layoffs. The union claims employees were initially told they would remain employed until September while severance negotiations took place, only to receive termination letters offering the "bare legal minimum" in severance shortly thereafter.

These layoffs are part of Xbox's broader plan to reduce its workforce by over 3,000 employees this summer. Bethesda's Montreal studio is known for developing popular game franchises. This legal action follows similar accusations against Xbox and parent company Microsoft, which has been accused of bargaining in bad faith by the Communication Workers of America in the US and Canada.