The dark side of the gaming industry has reared its ugly head again. Labor union CWA Canada is speaking out against Microsoft’s handling of layoffs at Bethesda Game Studios Montreal, where a dozen union members have been let go in the latest round of job cuts at Xbox. The shocking move has left employees feeling “used, abused, and discarded” after dedicating years to the studio.
The affected workers were summoned for a brief three-minute video call, where they were informed of their fate without being allowed to ask questions or discuss their options. To add insult to injury, they will be expected to stay at home for the next eight weeks while continuing to receive pay. This sudden and callous decision has left the remaining employees feeling on edge, with morale, work quality, and game development all likely to suffer as a result.
CWA Canada president Carmel Smyth expressed her outrage, stating that those who lost their jobs had given years of their lives to Bethesda Game Studios Montreal. “Your creations make millions of dollars globally then overnight a boss tells you ‘thanks, stay home, we don’t need you.’ How is it okay that one of the world’s richest employers comes to Canada and treats people like that?” she asked.
This latest development is part of a larger trend at Xbox, where 3,200 roles are set to be eliminated by the end of the current fiscal year. While some studios have been spared so far, others have been hit hard, with id Software reportedly being cut in half and ZeniMax Online Studios feeling the pinch. Obsidian Entertainment has also seen significant job losses, with between 60 to 70 people let go.
The U.S. branch of CWA has pledged to take “all necessary legal and contractual action” to defend its members caught up in the Xbox purge. The union is demanding immediate bargaining on issues such as fair severance, vendor-contract decisions, internal placement, and recall rights. As Smyth pointed out, “That’s the difference a union makes. Organized workers have a seat at the table on the decisions that affect their lives and families, and that includes layoffs.”
The treatment of these employees raises serious questions about Microsoft’s priorities and values as a company. With its massive profits and global reach, it’s unacceptable for one of the world’s richest employers to abandon its people in such a heartless manner.
As the VR industry continues to grow and evolve, we must also acknowledge the human cost behind the scenes. The struggles faced by developers and employees are just as important as the cutting-edge technology that drives our passion for immersive experiences. Microsoft’s handling of these layoffs is a stark reminder that we need to prioritize empathy, fairness, and respect in our industry.
The future of VR/XR depends on creating an ecosystem where creators can thrive without fear of being discarded like yesterday’s trash. We must support labor unions and advocate for better working conditions, fair compensation, and meaningful opportunities for growth. Only then can we unlock the full potential of this incredible technology and bring it to the world in a way that uplifts and inspires us all.
Source: Game Developer XR — 2026-07-08