Xbox CEO Asha Sharma’s internal playthrough of The Elder Scrolls 6 disrupted by a giant inflatable rat, as Bethesda union protests cuts
Bethesda employees and the CWA video game union staged a protest outside the company’s Rockville, Maryland office during an internal visit by Xbox CEO Asha Sharma, using a giant inflatable rat and red flags to highlight recent job cuts. The action coincided with Sharma’s reported playthrough of The Elder Scrolls 6, drawing attention to ongoing concerns over Microsoft’s restructuring of its gaming business.
A WARN notice said 166 Bethesda Rockville developers were laid off last month, while Microsoft announced 3,200 Xbox-related redundancies, including 1,600 expected later in 2026. Union member Nathan Hahn said staff had also displayed posters and balloons inside the office after management restricted outward-facing posters; Sharma made no public comment on the protest but praised The Elder Scrolls 6 on X.
- Union protest highlighted 166 layoffs at Bethesda’s Rockville office.
- A giant inflatable rat accompanied Xbox CEO Asha Sharma’s visit.
- Further Xbox job cuts are expected during 2026.
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Bethesda is the Maryland-based studio behind The Elder Scrolls role-playing games, including the forthcoming sixth instalment. It is part of Microsoft’s Xbox gaming business, which has been restructuring and cutting jobs.
The Communications Workers of America (CWA) represents some video game workers and has organised at Bethesda over workplace concerns. In the United States, a WARN notice is a formal notice about large-scale job losses; it can help explain the scale of cuts affecting a workplace. The dispute matters to staff and to the wider games industry because it raises questions about how company changes affect the teams making major games.
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The strongest fair case each way — we don't pick a winner.
The case for
Large organisations must sometimes make difficult restructuring decisions to remain competitive and efficient. Microsoft's consolidation of its gaming division, acquired through multiple studio purchases, likely contained overlapping functions and redundant roles. Strategic focus on successful franchises and financial sustainability serves the long-term interests of the company, its shareholders, and ultimately its remaining workforce. These decisions, whilst painful, are a recognised part of managing complex enterprises in competitive markets.
The case against
Redundancies affecting thousands of skilled workers cause genuine hardship to those losing livelihoods and their families. The gaming industry's strength depends on accumulated expertise and creative talent—layoffs of this scale represent a substantial loss of institutional knowledge. The escalation to public protest suggests internal grievance procedures failed to meaningfully address worker concerns, and the CEO's silence on the matter whilst praising the game suggests worker wellbeing is not a priority. Restricting internal protest demonstrates the company is not genuinely engaging with workforce concerns.