Microsoft layoffs: Bethesda employees say HR removed tribute to laid-off colleagues

Employees at Bethesda Game Studios have accused the company's HR team of removing a workplace memorial created to honour colleagues laid off during Microsoft's latest Xbox job cuts, prompting fresh criticism of how the company is handling the aftermath of another major restructuring.

According to posts published by the OneBGS Bethesda Game Studios Union and first reported by Kotaku, HR instructed staff at Bethesda's Rockville, Maryland office to remove a "Celebration of Service" display shortly after it was installed in a common area.

Neither Microsoft nor Xbox had publicly responded to the union's claims at the time of reporting.

Union says HR ordered memorial to be taken down

The memorial was created after Microsoft began another large round of layoffs earlier this week across its Xbox business, affecting multiple studios including Bethesda Game Studios.

According to the union, employees at Bethesda's Austin studio first organised a "Celebration of Service" display featuring photographs of colleagues who had lost their jobs.

Inspired by the Austin team, employees in Rockville assembled a similar tribute on Wednesday morning.

The union alleged the display was removed almost immediately after HR intervened.

In a post on Bluesky, the union wrote: "Unfortunately, HR made our office manager take this down almost immediately. They said because it's in a common area, it had to be removed."

The union also questioned the decision, noting the company had previously allowed other displays, including fan artwork, in shared office spaces.

Layoffs affect multiple Xbox studios

The memorial follows another significant round of workforce reductions across Microsoft's gaming business. According to Kotaku, the latest layoffs affected several Xbox studios and subsidiaries, including:

• Bethesda Game Studios
• id Software
• Obsidian Entertainment
• Activision

Microsoft spun off or sold studios including Double Fine and Ninja Theory as part of wider organisational changes.

Bethesda's satellite studios were also affected by the layoffs, with multiple employees losing their roles.

Workplace memorial highlights employee sentiment

The tribute consisted of framed photographs of former employees alongside flowers under the title "Celebration of Service."

According to the union, the display was intended to honour colleagues who had contributed to the studio and to show solidarity following the job cuts.

The reported removal has since drawn attention across social media, with employees and supporters questioning the decision to prevent the memorial from remaining in a shared workspace.

Union relations remain under scrutiny

The latest dispute comes against the backdrop of Microsoft's commitments on labour relations following its acquisition of Activision Blizzard.

In 2022, Xbox pledged not to oppose unionisation efforts during the regulatory process surrounding the acquisition.

Since then, several Xbox studios have formed unions.

However, union members have previously raised concerns about the pace of contract negotiations and have called for stronger protections around layoffs and workplace conditions, according to Kotaku.

Workforce changes continue across Microsoft's gaming business

Microsoft's latest restructuring marks another period of significant change for its gaming division as Xbox continues to reshape its studio portfolio and operations.

While the company has not publicly commented on the reported removal of the Bethesda memorial, the incident has added another dimension to the conversation around how organisations support employees and recognise colleagues during periods of workforce reduction.