ROCKVILLE, MARYLAND — Hundreds of Bethesda Game Studios and Zenimax Online Studios employees and supporters held a protest rally in front of Zenimax’s headquarters in Rockville, Maryland. The demonstration demanded that Microsoft return to bargaining negotiations with uncontracted members of Bethesda Game Studios following recent layoffs that affected hundreds of Maryland employees.

The rally took place during lunchtime in temperatures nearing 100°F. Attendees held signs with messages including “Layoffs… layoffs never change” and “Our players deserve better.” The event was one of five coordinated protests organized the same day by Zenimax Workers United and the Communication Workers of America at offices in Texas, California, and Montreal.

“It’s about us building our movement and making sure that we get seen and we’re visible,” said Nathan Hahn, a Bethesda technical producer and union volunteer organizer. “Because we want to make sure that we’re not okay with these layoffs and that Xbox knows.” Hahn led the crowd in a song with the refrain: “It’s time to change the game.”

The union is demanding that Microsoft return to the bargaining table to resume contract negotiations with uncontracted members of Bethesda Game Studios. “We had … a reduction in force proposal on the table for months, and they ignored it,” Hahn said. “They never got back to us. So instead, they’ve chosen to do layoffs … without bargaining with us, and that’s something that we’re fighting back against.” He added that staff had received signals from Xbox that Fallout and Elder Scrolls were going to be pivotal titles, making the layoffs of those teams “a real deep cut for us.”

Rockville Mayor Monique Ashton appeared at the rally to offer support for the laid-off workers. “We have seen job losses related to issues in the federal government… [but] to see the gaming industry that has been blossoming, so this, it’s something that I’m concerned about,” Ashton said. “I know that there are jobs going overseas, and jobs going to AI. It’s going to touch every industry, and we, as consumers, have to say, we value people.” Ashton stated she would speak with the County Council and the Maryland Department of Labor to advocate for fairness in how employees are treated.

Microsoft responded to the protest through a spokesperson, who stated, “We respect our employees’ right to make their voices heard, and we recognize that this is a difficult time for many.” The spokesperson added, “We reached out to the union on July 6 to begin effects bargaining and are committed to that process.” A third statement from the company said, “We remain focused on supporting impacted employees through this transition while positioning the organization for long-term strength.”

The layoffs were announced last week by Microsoft CEO Asha Sharma, who described the Xbox business as “not healthy” and operating at margins well below the competition. Sharma framed the cuts as part of a strategic shift, saying, “These changes are about a bigger future for Xbox, not a smaller one.” She added, “This year, we’ll invest as much in Xbox as we ever have, but we’ll invest with greater focus, greater discipline, and greater clarity, all in service of making Xbox where the world plays and creates.”

Among those affected was Jay Woodward, who was laid off after nearly 20 years as an AI programmer at Bethesda, a tenure dating back to the development of Fallout 3. “Obviously, in the business world, we understand that this is the sort of thing that happens,” Woodward said. “[But] it’s absolutely not inevitable. That’s a complete nonsense concept, especially when the studio, when the overall company is doing fantastically well, there’s no need to say that this has to happen.”

Juniper Dowell’s five-year tenure as a quality assurance tester also ended with the layoffs. “[Last year] we lost about 100 folks, and that was impossible to deal with,” Dowell said. “And this time we lost even more.

… This is skilled labor. You can’t pull someone off the street and ask them to start developing games or to start testing games. These are skills that are learned and honed over time. And the people who do this matter. And to treat it like they don’t is absurd, frankly.” Microsoft reached a separate agreement with QA testers last year that included guaranteed severance for laid-off employees.

The protest underscores growing tensions between Microsoft and organized game studio workers following the company’s $8.1 billion acquisition of ZeniMax Media in March 2021. Bethesda Game Studios, an American in-house development team under Bethesda Softworks, is responsible for major franchises like Fallout and The Elder Scrolls. The layoffs and halted negotiations directly affect hundreds of Maryland employees in Rockville, a Washington, D.C. suburb and the seat of Montgomery County. Microsoft’s stated strategy of greater “focus” and “discipline” in its Xbox investments clashes with worker demands for job security and bargaining rights, highlighting a pivotal moment in labor relations within the gaming industry.