Bethesda is now facing a lawsuit filed by its labor union over alleged violations of labor laws.

The trouble began earlier this month. According to OneBGS, the Bethesda labor union, dozens of Bethesda Game Studios staff across the US and Canada were informed via video call on the 6th that they were on the chopping block. At the time, the company claimed that "current employment status would be maintained until September while severance terms were negotiated with the union." The affected staff believed this promise, assuming they had secured a sliver of breathing room to plan their next steps.

However, on the 17th, those same employees received a final termination notice via email. The document laid out a cold reality: without any consultation with the union, the company intended to pay only the bare legal minimum in severance. This amounted to just eight weeks of pay in lieu of notice and accrued vacation time, with group health benefits cut off immediately.

In response, OneBGS has launched legal action, asserting that the company is repeatedly flouting Canadian labor laws. The union stated, "Despite the massive profits generated by the dedication of the staff, Xbox and Bethesda leadership are discarding employees without hesitation the moment they are deemed redundant." The union remains firm in its stance that the rank-and-file will no longer shoulder the burden of management's failures.

Meanwhile, the Communications Workers of America (CWA) has also weighed in, criticizing Bethesda's recent maneuvers. On the 17th, the union declared via Bluesky that the company's barrage of announcements regarding new titles is a deliberate PR smokescreen designed to hide mass layoffs and internal turmoil. Furthermore, the union questioned whether normal game development is even feasible after casting aside hundreds of staff members, urging the public not to be fooled by the company’s deception.