Bethesda Developer Reveals Layoffs Increased After Xbox Acquisition: “We Rarely Saw Cuts Before”
Today, Xbox game developers are organizing rallies to support laid-off colleagues, highlight the ongoing culture of layoffs at Microsoft, and advocate for better treatment of remaining staff. Backed by the One Bethesda Game Studio union and the Communication Workers of America, the Save Our Devs rally is taking place in nine cities across the U.S. and Canada, as well as online on the United Video Game Workers – CWA Twitch Channel. Two members of OneBGS shared their thoughts on the rally, their aspirations for the future, and their experiences working at an Xbox studio.
The rally aims to spotlight the widespread layoffs that have already affected 1,600 workers, with more cuts anticipated before mid-next year. The gaming industry has faced ongoing contractions, leading to an environment where layoffs feel inevitable. This wasn’t always the case for Bethesda, which had a history of stability until Microsoft’s acquisition. Alex Nguyen, a lead character artist, noted that during Bethesda’s time under Zenimax, layoffs were rare.
“That was one of the benefits,” he explained. “Many people had long tenures here, thinking, ‘This is where I’ll retire,’ or ‘I want to stay in the industry for a long time.’ That was a significant advantage of being at Bethesda or a Zenimax studio.”
Nguyen recalled that when challenges arose, developers were given opportunities to address them, citing the rocky launches of Fallout 76 and The Elder Scrolls Online as examples where the team was allowed to make improvements. “But since we’ve been under Microsoft, it feels like something has changed. We didn’t have layoffs before, and now we suddenly have them every year.”
Layoffs not only hurt morale but also impact game quality. “Every coworker contributes to our company’s success,” said Nathan Hahn, a technical producer at Bethesda Game Studios for four years. “Without us, Bethesda games aren’t Bethesda games.” The extensive layoffs have increased the workload for those remaining, and many seasoned veterans have lost their jobs, taking valuable knowledge with them.
“If only five people knew how this thing worked and you let all five of them go,” Nguyen said, “that’s a morale killer because we already knew this, and now we have to learn it all over again.”
However, layoffs don’t have to be handled this way. Microsoft could collaborate with unions to negotiate fair terms for layoffs. “We submitted a proposal to the company on how to conduct a reduction in force back in February,” Hahn mentioned. “The company sat on that for four months without responding before proceeding with these layoffs.”
While negotiations are ongoing, layoffs are happening now, prompting employees to take public action to garner support and clarify who is affected. “We’ve seen statements suggesting that a lot of middle management was let go,” Nguyen said. “It’s not middle management. It’s the people on the ground ensuring that the game works and gets into players’ hands.”
Being a Bethesda developer is challenging right now, but the union members we spoke to remain hopeful. An unfair labor practice complaint has been filed with the National Labor Relations Board against Microsoft regarding these firings, and the rally is drawing international attention to the developers’ situation. “Morale for our work has never been lower,” Hahn said. “But morale for what we can achieve together is on the rise.”
