Union accuses Microsoft of unlawful layoffs in Montreal; Bethesda union slams Xbox for offering 'Bare legal minimum' severance
id SoftwareXboxCWA CanadaNational Labor Relations BoardBethesda Game StudiosZeniMax Media Inc.OneBGSCommunications Workers of AmericaObsidian EntertainmentMicrosoft

Union accuses Microsoft of unlawful layoffs in Montreal; Bethesda union slams Xbox for offering 'Bare legal minimum' severance

The OneBGS union has accused Microsoft of unlawful layoffs affecting 435 workers in Montreal, claiming the company failed to negotiate severance terms. Laid-off Bethesda employees received only the legal minimum severance, prompting protests and an unfair labor practice charge against Microsoft for neglecting to bargain with the union.

Game Developer+1 source23 July 2026 · 20:18 UTC
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OneBGS has filed an unfair labor practice charge against Microsoft, alleging unlawful layoffs of approximately 435 unionized workers in Montreal without proper negotiation. The layoffs, which eliminated 40 percent of the bargaining unit, were executed despite prior assurances that employees would remain until September 2026.12457

Affected Bethesda employees received termination letters stating they would receive only the bare legal minimum in severance—eight weeks of pay and loss of health benefits—contradicting earlier commitments made during a July 6 video call.6

The union claims this action violates labor laws in Canada, as Microsoft failed to engage in necessary bargaining processes. “Bethesda and Xbox leadership depend on our labour to make them millions, and yet when we do, we are disposed of,” said a union representative, emphasizing the need for fair treatment.

The ULP filed with the National Labor Relations Board highlights Microsoft's neglect to provide notice or discuss layoffs with the union, which is legally required during ongoing negotiations. The union is determined to secure better severance terms for its members and has organized protests against the layoffs, marking the fifth round of mass layoffs in three years.

Microsoft has stated, “We respect our employees’ right to make their voices heard, and we recognise that this is a difficult time for many.” The company has expressed commitment to support impacted employees while navigating this challenging transition.

Key Insight
“The ULP filed with NLRB claims Microsoft eliminated 40% of unionized workers since January, creating an 'existential crisis' requiring injunctive relief. Affected workers were told they'd remain employed until September during a July 6 call, then received termination letters July 17 with just eight weeks' pay and lost health insurance.”
CuriousCats studied:
1
Game Developer
“OneBGS, a labor union representing a number of employees at the Fallout and Elder Scrolls maker, claims Microsoft initially told Bethesda Game Studios workers across the U.S. and Canada they would remain employed until September 2026 while the company negotiated severance with the union.”
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2
GamesIndustry.bizGamesIndustry.biz
“for continuing to violate labour laws in Canada.”
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