Bethesda union criticises Microsoft after Xbox layoffs, says workers are paying the price
Follow UsThe recent Xbox layoffs have affected several gaming studios, including Bethesda Game Studios.
After the company announced the latest round of job cuts, the Bethesda Game Studios Union criticised Microsoft's leadership.
"In what is becoming a stressful annual routine, Microsoft has decided to lay off thousands, including MANY of us at Bethesda Games Studios," the union wrote
The recent Xbox layoffs have affected several gaming studios, including Bethesda Game Studios. After the company announced the latest round of job cuts, the Bethesda Game Studios Union criticised Microsoft’s leadership. The latest restructuring includes around 3,200 layoffs in the Xbox division planned throughout FY27. The union said employees are facing the consequences of decisions made by senior executives. In a statement shared on BlueSky, the union described the layoffs as “a stressful annual routine.”
Survey“In what is becoming a stressful annual routine, Microsoft has decided to lay off thousands, including MANY of us at Bethesda Games Studios,” the union wrote. “With over 10k developers already cut from previous rounds, those at the top have deemed that insufficient in fixing their mistakes.”
Also read: After 3,200 Xbox layoffs, Microsoft tells employees more changes are coming
The union said many experienced employees have lost their jobs. According to the statement, several workers who have spent years, and in some cases decades, at Bethesda are among those affected. It also questioned the company’s repeated cost-cutting measures, asking, “When will this cycle of cuts in pursuit of ever-greater profits end?”
Unlike many game developers, Bethesda employees have the support of a labour union. This gives them legal protections during the layoff process. Microsoft must negotiate with the union about how the layoffs will affect its members.
The Bethesda Game Studios Union said this will help it fight for better support for affected workers. It said, “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.”
EVP and Chief People Officer Amy Coleman has confirmed that around 4,800 employees, or about 2.1 percent of Microsoft’s global workforce, are being laid off as part of fresh cuts.
Coleman also clarified that the latest layoffs are not happening because of AI. But she said AI is changing how work gets done. Some daily tasks can now be automated, and employees will need to keep learning new skills and adapt to changing job requirements.
Also read: Xbox layoffs: Microsoft to cut 3200 jobs in biggest restructuring in company history
