Bethesda is under scrutiny for potentially violating Canadian labor laws during recent layoffs at its Montreal studio. The accusation comes as part of the ongoing fallout from Xbox's major workforce reductions.
The allegations center on how Bethesda handled severance and notification procedures for affected Montreal employees. Canadian labor regulations require employers to provide advance notice and follow specific protocols when conducting mass layoffs.
Bethesda's Montreal studio was among several facilities impacted by Xbox's broader restructuring. The company laid off approximately 10,000 employees across multiple studios in October 2024.
Details regarding the specific labor law violations have not been fully disclosed, but sources suggest the company may not have complied with notice periods required under Quebec employment standards.
Bethesda has not yet publicly responded to the allegations. The situation adds to mounting pressure on Microsoft and its gaming division amid criticism over how the layoffs were executed across different regions.
Canadian labor authorities may investigate the matter further, potentially resulting in penalties or required compensation for affected workers.
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