Union accuses Bethesda of violating labour laws in Canada following layoffs at Montreal studio

OneBGS has filed a legal complaint against Bethesda, alleging the company continued to violate labour laws in Canada after layoffs hit Bethesda Montreal. The union says the affected employees were told on July 17 — the same day Bethesda outlined its future Fallout roadmap — that they would receive only the minimum severance allowed and would immediately lose group health benefits.

The dispute centers on a July 6 video call, where workers were reportedly told they would remain employed until September while Bethesda negotiated severance terms with the union. Instead, the termination letters allegedly offered eight weeks of pay in lieu of minimum notice, outstanding vacation pay, and no additional bargaining over the package.

This is part of a wider labour fight around Microsoft’s recent Xbox layoffs. Earlier this week, CWA and CWA Canada filed unfair labour practice complaints against Microsoft and subsidiaries including ZeniMax, id Software, and Bethesda Game Studios, alleging layoffs were carried out without the notice and consultation required during collective bargaining.

For developers, the practical takeaway is that layoffs are increasingly colliding with active union negotiations, and the legal exposure can extend well beyond a single studio. Xbox says it has reached out to begin effects bargaining and is focused on supporting impacted staff, but the outcome of these complaints could shape how future restructures are handled across large multi-studio publishers.