Microsoft's Xbox division initiated a substantial workforce reduction affecting multiple gaming studios, with Bethesda and its subsidiary operations absorbing over 440 cuts. The newly unionised Bethesda Game Studios workforce, which organised under the OneBGS banner in 2024, responded by scheduling coordinated protests across four cities for mid-July. Union representatives characterised the company's restructuring language as an attempt to circumvent collective bargaining obligations, asserting that workers have contractual rights to participate in decisions affecting their employment.

The union is pursuing specific contractual demands including mandatory consideration of laid-off staff for open positions elsewhere in Microsoft, enhanced severance packages, extended health coverage, and provisions requiring rehire priority for future expansion. Industry observers have warned of cascading consequences for major projects, particularly The Elder Scrolls 6, whilst other affected studios face severe staffing challenges. The timing coincided with the announcement that the newly appointed Xbox leadership would simultaneously assume responsibilities on a federal productivity task force addressing employment.