Bethesda workers in Rockville, Maryland, staged a striking protest during a visit from Microsoft leadership, placing a giant inflatable rat and hundreds of red flags outside the studio.
The action was organised by members of the Communications Workers of America and the Bethesda Game Studios Union, known as OneBGS-CWA. It was timed for a visit from Xbox CEO Asha Sharma.
The inflatable figure is a familiar symbol of organised labour, known affectionately throughout union organisations as Scabby.
A report from Chris Kerr (@kerrblimey.bsky.social) described the rat alongside a wall of red flags representing Xbox workers who had lost their jobs.
Red flags represented hundreds of job losses
Union members installed 800 red flags outside the office. Each one represented a person who had lost their job since July 2025, turning the entrance into a visible record of the cuts affecting Microsoft’s game development teams.
“Each flag was a public reminder of how many people management cut from our teams – not just our colleagues and coworkers, but our friends at the end of the day,” said Nathan Hahn, a technical producer and Bethesda Game Studios Union member.
The union also described the display as a reminder that studios are built by their workers. Its post about the action is available from OneBGS – Bethesda Game Studios Union (@bethesdaunion.bsky.social).
Posters, balloons and a message inside the office
The protest continued indoors. Employees put posters outside their cubicles, but removed them after management instructed staff to take them down. They then used balloons to keep attention on the layoffs.
Hahn said employees wanted to make their presence visible after hearing that Microsoft leadership would be visiting the office, highlighting the effect of the cuts on developers.
Xbox’s “great reset” follows widespread disruption
Last month, Xbox announced plans to cut roughly 3,200 jobs as part of what it called a “great reset”. Sharma said the move was intended to return the company to profitability.
The wider restructuring has included layoffs, cancelled projects and studio closures. Former Xbox-owned studios Double Fine and Compulsion Games have become independent again, with both reporting layoffs afterwards.
The future of Ninja Theory, Undead Labs and Arkane Lyon remains unclear. Reporting has indicated that Ninja Theory and Undead Labs may be bought by an unknown purchaser, while Arkane Lyon is “pursuing strategic options”.
Workers plan further action
The cuts have disrupted the developers who remain at affected studios. Xbox workers, working with the Communications Workers of America, will hold rallies across the U.S. and Canada on August 18 to protest the layoffs and seek fair union contracts that may include stronger layoff protections.
Hahn said the campaign aims to secure fair treatment for affected Xbox developers and testers, while also arguing that mass layoffs cannot continue across the games industry.
For more coverage of the wider games business, visit RETROCADE’s Arcade Blog and arcade industry videos. Readers considering a dedicated gaming setup can also explore the Arcade Machine Buying Guide or browse arcade machines.
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