Microsoft has defended the recent Activision Blizzard layoffs in response to the Federal Trade Commission’s (FTC) complaint to the 9th Circuit Court of Appeals. In a letter shared with PlayStation LifeStyle, a Microsoft spokesperson stressed that the Activision deal “substantially changed” since the FTC’s defeat in court last July, and there’s no instance where Microsoft misled the court.
Activision Blizzard layoffs would have happened with or without the merger
The FTC argues that Microsoft pledged to treat Activision Blizzard as an independent entity within Microsoft until the conclusion of its case against the merger, which would allow a divestiture should the FTC win. However, with Microsoft laying off approximately 1,900 employees — a large number of whom have been laid off from Activision Blizzard — the FTC complains that Microsoft is making a potential divestiture difficult.
Microsoft has pointed out in its response that the terms of the deal changed significantly in order to meet regulatory requirements around the globe, and the layoffs would have happened regardless.
“The post-merger developments further weaken the FTC’s case, including Sony’s signing an
agreement guaranteeing it access to Call of Duty on multiple platforms, and Activision’s
games appearing on cloud-gaming providers like Nvidia,” part of the statement reads. “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 battle continues…
