Microsoft Corp. MSFT has directly responded to the Federal
Trade Commission’s (FTC) claims regarding layoffs following the acquisition of Activision.
The FTC criticized Microsoft’s 1,900 layoffs, asserting that they contradicted
earlier assurances made during the antitrust trial.
In response, Microsoft stated that Activision had already planned significant job
cuts before the merger and criticized the FTC’s claims as “incomplete and misleading,” The Verge reported.
According to Microsoft, “Activision was already planning on eliminating a significant
number of jobs while still operating as an independent company.”
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With Office Closure
The filing also noted that Activision’s pre-existing layoff plans aligned with industry
trends impacting the gaming sector. This is consistent with layoffs announced by other gaming companies like
Sega Sammy Holdings Inc SGAMY and CI Games, reflecting wider industry
challenges.
Microsoft had previously stated that the layoffs were due to identifying overlaps and the
need for a sustainable cost structure. This was reiterated in Microsoft Gaming CEO Phil Spencer’s memo
accompanying the initial announcement of the company’s 1,900 layoffs within its gaming department last
month.
Furthermore, the tech giant asserted in the court filing its readiness to reverse the
acquisition. Game Rant reported a company representative clarifying that the deal allows for divestment from
Activision if necessary, although such a scenario is deemed unlikely.
The FTC’s objections primarily concern antitrust matters rather than workforce
protections, making it questionable whether recent layoffs across Activision subsidiaries would affect court
approval of the acquisition.
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