Microsoft has defended the latest Activision Blizzard layoffs in response to the Federal Commerce Fee’s (FTC) criticism to the ninth Circuit Courtroom of Appeals. In a letter shared with PlayStation LifeStyle, a Microsoft spokesperson harassed that the Activision deal “considerably modified” because the FTC’s defeat in courtroom final July, and there’s no occasion the place Microsoft misled the courtroom.
Activision Blizzard layoffs would have occurred with or with out the merger
The FTC argues that Microsoft pledged to deal with Activision Blizzard as an impartial entity inside Microsoft till the conclusion of its case in opposition to the merger, which might enable a divestiture ought to the FTC win. Nevertheless, with Microsoft shedding roughly 1,900 staff — numerous whom have been laid off from Activision Blizzard — the FTC complains that Microsoft is making a possible divestiture tough.
Microsoft has identified in its response that the phrases of the deal modified considerably with the intention to meet regulatory necessities across the globe, and the layoffs would have occurred regardless.
“The post-merger developments additional weaken the FTC’s case, together with Sony’s signing an
settlement guaranteeing it entry to Name of Responsibility on a number of platforms, and Activision’s
video games showing on cloud-gaming suppliers like Nvidia,” a part of the assertion reads. “Per broader tendencies within the gaming trade, Activision was already planning on eliminating a major variety of jobs whereas nonetheless working as an impartial firm.”
The battle continues…