By Zobia Zulfqar 
Unionized employees at Bethesda Game Studios (BGS) are preparing to stage a “Save Our Devs” rally on July 15 in response to Microsoft’s latest round of layoffs across its Xbox gaming division.
The protest is being organized by members of the OneBGS union, who say they are determined to challenge the job cuts and secure stronger protections for affected workers. Demonstrations are scheduled to take place outside ZeniMax Media offices in Rockville, Maryland; Austin and Dallas, Texas; and Montreal, Canada.
The rally follows Microsoft’s announcement that it plans to eliminate 3,200 jobs across Xbox by the end of its current fiscal year as part of a broader restructuring strategy.
Union Rejects Company’s Justification
According to an email sent by the OneBGS Mobilizing Committee to union members, Microsoft and ZeniMax have eliminated more than 440 positions across several studios, including Bethesda Game Studios, ZeniMax Online Studios, id Software, quality assurance teams and corporate departments.
The union argues that Microsoft is attempting to classify the layoffs as an “entrepreneurial change in the scope of business” by shifting from what it describes as a studio-based model to a franchise-based structure.
OneBGS strongly disputes that explanation.
Union leaders say changing business terminology does not remove Microsoft’s legal obligation to negotiate with employees over decisions affecting their jobs and working conditions.
“The company wants us to accept this as a done deal and quietly disappear,” the union said in its message to members. “We won’t let that happen.”
Workers Plan Public Demonstration
Organizers are encouraging all union members to participate in the July 15 demonstrations to show solidarity with colleagues who have lost their jobs.
According to OneBGS, the goal is not only to protest the layoffs but also to demonstrate that organized workers have legal rights that many non-unionized game developers do not.
Union representatives believe public visibility will strengthen their position as negotiations continue with Microsoft.
Hundreds of Jobs Affected
According to information cited by the union, Microsoft has laid off 35 employees at Bethesda Game Studios in the United States and at least 12 additional workers at its Montreal office.
Separate workforce notices indicate that 136 employees at id Software have also been affected, while another 379 workers across ZeniMax operations in Maryland, including ZeniMax Online Studios, are expected to lose their jobs.
The layoffs form part of Microsoft’s broader restructuring of its Xbox business following recent strategic changes.
Demands During Negotiations
Although OneBGS continues to challenge the company’s interpretation of the restructuring, union leaders say they are also focusing on negotiations over how the layoffs will affect workers.
Among the union’s key demands are:
- Priority transfers into vacant positions across Xbox and Microsoft.
- Improved severance packages for affected employees.
- Extended healthcare coverage after job losses.
- Recall rights that would give laid-off workers priority if Bethesda expands hiring in the future.
The union believes these measures would reduce the financial impact on employees while preserving opportunities for future employment within Microsoft.
Xbox’s Ongoing Restructuring
Microsoft says the layoffs are part of a broader effort to reposition its gaming business after several strategic initiatives, including Xbox Game Pass and its multiplatform expansion, failed to deliver expected results.
Xbox leadership has described the restructuring as necessary to focus investment on higher-priority projects and improve the long-term performance of the gaming division.
However, the decision has drawn criticism from employees and industry observers, particularly because it follows several years of major acquisitions that significantly expanded Microsoft’s gaming workforce.
Growing Union Influence
The upcoming protest highlights the growing influence of labor unions within the video game industry.
In recent years, developers at several major studios have organized to negotiate better working conditions, greater job security and stronger protections during corporate restructuring.
For OneBGS members, the July 15 rally represents more than a protest against layoffs. Organizers say it is an opportunity to demonstrate that unionized workers intend to play an active role in decisions affecting their careers and the future of game development at Microsoft-owned studios.