The FTC lashes out over layoffs at Activision, and Microsoft responds

The company claims that the fate of the workers was sealed before closing the acquisition

The FTC lashes out over layoffs at Activision, and Microsoft responds

The company claims that the fate of the workers was sealed before closing the acquisition

Microsoft's acquisition of Activision Blizzard King faced strong opposition from the United States Federal Trade Commission (FTC). However, a crucial element that allowed the deal to progress was the support from the Communications Workers Of America (CWA) union, which asserted that workers would benefit. Following the recent wave of layoffs, the FTC criticized the companies involved, and Microsoft has responded.

FTC criticizes Microsoft for the recent wave of layoffs

A few days ago, the FTC filed a complaint in the Court of Appeals regarding the massive layoffs that affected Activision Blizzard King employees. According to the regulator, the personnel cut, a total of 1,900 workers, including several from Activision Blizzard, was evidence that Microsoft had no intention of adhering to what was stated before the authorities, specifically the operation with independence from the acquired companies. In general terms, the FTC held Microsoft responsible for the layoffs.

Microsoft's response was swift, and today, the American company filed a document with the Court of Appeals holding Activision Blizzard King accountable (via Stephen Totilo on X). According to Xbox, the decision to lay off workers had already been made before the acquisition was finalized when the Call of Duty company operated independently. Therefore, Microsoft claims no responsibility for the wave of personnel cuts.

Microsoft holds Activision Blizzard King responsible for the recent layoffs
Microsoft holds Activision Blizzard King responsible for the recent layoffs

Microsoft responds and blames Activision Blizzard King

Additionally, Microsoft reminded the FTC that all agreements made, both locally and internationally, are documented in legal papers, and there is a commitment and obligation to enforce them during the agreed-upon time, addressing concerns about market competition.

Regarding the wave of layoffs at Activision Blizzard King, it was recently reported that Toys for Bob, the studio responsible for the return of platformers like Crash Bandicoot, had closed an office, though a complete closure has been denied, and there are still employees there. Furthermore, personnel cuts affected Treyarch, Infinity Ward, and Sledgehammer, studios behind Call of Duty, and it is known that these layoffs, part of the confirmed 1,900, will continue until March.

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