The Bethesda Game Studios union says it has filed another legal complaint against Bethesda after affected employees in Montreal were given what it described as the minimum severance permitted under Canadian law.
The complaint follows a wider round of cuts announced across Bethesda Game Studios in July. According to the union, dozens of employees in the United States and Canada were told during video calls on July 6, 2026, that they were being laid off but would remain employed through September while severance terms were negotiated.
Union Says Canadian Employees Received Different Terms
The union says that arrangement changed on Friday, July 17, when affected Canadian employees received termination letters by email. Those workers were part of the Fallout and The Elder Scrolls teams at Bethesda Montreal.
In a statement posted by the Bethesda Workers Union, the group said the letters offered eight weeks of pay in lieu of minimum legal notice, along with outstanding vacation pay. The employees also lost their group health insurance immediately, according to the union.
Bethesda Games Studios’ Montreal workers are being treated especially poorly by XBOX and we won’t stand for it. Here are the details.If this upsets you let Microsoft know: feedbackportal.microsoft.com/feedback/ide…
— OneBGS – Bethesda Game Studios Union (@bethesdaunion.bsky.social) 2026-07-22T14:50:07.511Z
The union said the terms contradicted what employees had been told during the July 6 calls. It also said the workers had been promised that discussions about severance would continue while they remained employed through September.
“We’re not going to take this lying down.”
The union said it filed the complaint because it believes Bethesda continued to violate labor laws in Canada. It also accused Bethesda and XBOX leadership of benefiting from workers’ labor while leaving employees to bear the consequences of management decisions.
Complaint Comes During Xbox Restructuring
The dispute comes as XBOX restructures its business after announcing broad changes on July 6. The company’s plans included studio changes and layoffs, with Double Fine expected to return to independent status. Mojang, the studio behind Minecraft, will report directly to XBOX CEO Asha Sharma under the new structure.
XBOX has also said it plans to place more emphasis on console exclusives as part of its business direction. The union’s complaint adds another layer of scrutiny to the company’s handling of workers affected by the restructuring.
Any legal response from Bethesda or XBOX was not included in the union’s statement.
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