- Bethesda Game Studios Union condemned the recent layoffs at Xbox, placing the blame on the top executives.
- Microsoft is legally obligated to negotiate with the workers at Bethesda who were impacted by the Xbox layoffs.
- The Bethesda Game Studios Union has confirmed they will do everything to take care of workers impacted by the situation.
The recent Xbox layoffs have hit some of the company’s biggest and most famous creators, with Xbox CEO Asha Sharma announcing 3,200 layoffs over FY27. Among the companies hit with the layoffs is Bethesda. After Sharma’s announcement, the Bethesda Game Studios Union has issued a sharp statement condemning the Xbox layoffs and how it has impacted studios.
Bethesda Union Will Ensure Workers Impacted by Xbox Layoffs Will Be Taken Care Of
In their statement released on BlueSky, the Bethesda Game Studios Union criticized Microsoft’s top executives over the recent Xbox layoffs, claiming that regular employees end up paying the price for leadership’s mistakes. The union shared the statement online, exclaiming: “In what is becoming a stressful annual routine, Microsoft has decided to lay off thousands, including MANY of us at Bethesda Game Studios. Those at the top have deemed [previous cuts] insufficient in fixing their mistakes.”
The union highlighted how many veteran workers across Xbox, including many who have been at Bethesda for decades, have been impacted by the layoffs, questioning: “When will this cycle of cuts in pursuit of ever-greater profits end?” This comes after Xbox leadership explained that the cuts stem from previous studio acquisitions not paying off and growth slowing down for Xbox Game Pass.
The recent downsizing at Xbox has already led to 1,600 immediate job terminations, with another 1,600 on the way, along with studios like Ninja Theory and Undead Labs parting ways with the company. However, thanks to the Bethesda Game Studios Union, the workers at Bethesda have a unique advantage that most other video game developers do not: a labor union.
Since the workers are part of a union, Microsoft is legally required to negotiate with them. Commenting on this, the Bethesda Union stated: “Because of our One BGS union, we have the right to negotiate over the impacts of these layoffs, helping secure stronger severance packages and better support for those leaving the company. We will do everything we can to make sure our friends are properly taken care of.”
The gaming industry has had no shortage of bad news recently, whether it be the Xbox layoffs or the PlayStation disc debacle. With the recent price increase for Xbox consoles and now such a massive downsizing, things are looking bleak over at Xbox. Right now, fans can only hope that the developers at Bethesda and Xbox, in general, land on their feet after the recent restructuring, something the upcoming negotiations could help with.
What are your thoughts on the recent round of layoffs at Xbox? Tell us in the comments below!
