Microsoft defends decision to lay off nearly 2000 employees

Apparently, the merger being timed in the same period was just a coincidence.
Text: Alex Hopley
Published 2024-02-09

Microsoft recently made the decision to lay off 1,900 employees, adding to the thousands of game job losses we've seen over the past 12 months in a big way. The FTC has criticised Microsoft for this decision, as it seems that these layoffs are largely a part of the merger between Xbox and Activision Blizzard.

However, in a response to the FTC, Xbox claims this isn't true. "Consistent with broader trends in the gaming industry, Activision was already planning on eliminating a significant number of jobs while still operating as an independent company," the response states. "The recent announcement thus cannot be attributed fully to the merger."

The FTC finds this response inconsistent with the case Microsoft made to let the deal go through. These layoffs imply that Activision Blizzard is not being run as an independent company, which Microsoft promised would be the case should the merger go through.

What do you think of Microsoft's response?

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