“The smallest severance pay possible” – Bethesda union vows to fight as studio employees reel from “bare minimum” payout following mass Xbox layoffs

Following Xbox mass layoffs earlier this month, employees at Bethesda’s Montréal studio have reportedly been told they’ll receive the “smallest” severance pay legally possible.

That’s according to Bethesda workers union OneBGS, which made the claim on social media Bethesda reportedly notified employees in Montréal of their termination on 17th July, detailing an exit package OneBGS calls “the smallest severance legally possible without bargaining with the union.” The union also claims this contradicts what employees were told in a video call on 6th July: that they would be employed until September and that severance was being negotiated with the union.

Instead, the emails received on the 17th brought dire news beyond their sudden termination according to OneBGS. Employees were reportedly told they would receive eight weeks of pay in-lieu and any remaining vacation pay – which the union describes as the “bare legal minimum in terms of severance”. In addition, it says employees would “immediately” lose access to their group benefits health insurance.

In response, OneBGS has now filed a legal complaint against Bethesda for violating Canadian labour laws. “Bethesda and Xbox leadership depend on our labour to make them millions,” the union wrote on social media, “and yet when we do, we are disposed of. The cycle of workers paying for the mistakes of management ends here.”

If the timeline conveyed by OneBGS is accurate, the emails to Bethesda staff would have been received on the same day the studio noisily revealed a slew of updates for its major franchises, including Fallout, The Elder Scrolls, and Starfield. Bethesda was one of multiple Microsoft studios impacted by the mass Xbox layoffs affecting a total of 3,200 employees. Subsequent reports claimed even big upcoming releases like The Elder Scrolls 6 weren’t safe from the firing spree. In direct response to the job cuts, OneBGS announced a march in protest, saying, “We mean business”.

Canada is known for having strong labour laws, so if Microsoft has breached the rights of unionised workers in its Montréal studio, OneBGS may have ample ammunition to fight for its members. Whether Microsoft budges or not may very well be tested in the months following its controversial business “reset”.