FTC criticizes Microsoft for its recent gaming layoffs following Activision acquisition
The US Federal Trade Commission (FTC) has criticized Microsoft for its recent decision to lay off 8% of its gaming workforce, claiming that it contradicts previous statements about how it would run Activision Blizzard post-acquisition.
The details:
Last month, Microsoft announced that it would cut over 1,900 jobs in its gaming division, affecting those at Activision Blizzard, Xbox, and ZeniMax. In a message to employees, Microsoft Gaming CEO Phil Spencer stated that the decision was made as part of the company's new strategy to achieve a "sustainable cost structure that will support the whole of our growing business."
The FTC has filed a complaint with the 9th US Circuit Court of Appeals (via Bloomberg), claiming that the layoffs are "inconsistent" with Microsoft's previous statement during the legal battle that "the two companies will operate independently post-merger.”
It also claims that the decision to lay off such a large number of employees "undermines" the FTC's ability to provide "effective relief" if its pending administrative proceeding is successful.
More gaming news:
Disney has announced a $1.5 billion investment to acquire an equity stake in Epic Games and will create an “all-new games and entertainment universe" interoperating with Fortnite.
It has been reported that the PS5 and PC versions of Media Molecule's Dreams have been canceled despite being close to completion.
