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Bethesda union files lawsuit over Montreal layoffs

Published 23 July 2026

The union representing workers at Bethesda Game Studios has filed a legal complaint against the company, alleging it violated Canadian labor laws by laying off Montreal employees without proper negotiation and offering only the minimum legal severance. The action by OneBGS is the latest in a series of labor disputes stemming from widespread layoffs announced by parent company Microsoft earlier this month.

According to the union, affected employees at the Montreal studio were initially told in calls on Monday, July 20, that they would remain employed until September while the company negotiated severance terms with OneBGS. However, on Friday, July 17, those same employees reportedly received termination letters via email. The letters stated they would receive eight weeks of pay in lieu of notice, any outstanding vacation pay, and would immediately lose group health benefits, which the union characterized as "the bare legal minimum."

OneBGS alleges this action was taken without bargaining with the union, a claim supported by an anonymous source who stated the move signals to workers that the company would give less if it were legal. The union has vowed to fight for better terms...

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