Subj : Microsoft claims Activision was already planning significant layo
To   : All
From : TechnologyDaily
Date : Fri Feb 09 2024 10:30:05

Microsoft claims Activision was already planning significant layoffs before 
its acquisition, consistent with broader trends in the gaming industry

Date:
Fri, 09 Feb 2024 10:26:48 +0000

Description:
Microsoft has stated that Activision was already planning layoffs before its 
merger.

FULL STORY
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Microsoft has defended claims made by the Federal Trade Commission (FTC) that 
its plans to lay off around 1,900 members of its gaming staff contradict 
representations it made during the fight to acquire Activision , and stated 
that Activision was already planning significant staff cuts. 

In case you missed it, on Wednesday (February 7), the FTC submitted a letter 
to the U.S. Court of Appeals for the Ninth Circuit by the Federal Trade 
Commission (FTC), in which it alleged: Microsoft reportedly has stated that 
the layoffs were part of an execution plan that would reduce areas of overlap 
between Microsoft and Activision, which is inconsistent with Microsofts 
suggestion to this Court that the two companies will operate independently 
post-merger. 

Microsofts response , submitted to the U.S. Court of Appeals for the Ninth 
Circuit by Rakesh Kilaru yesterday (February 8), said the FTCs factual 
assertions are incomplete and misleading, and that the recent layoffs cant be 
attributed fully to the acquisition. 

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. 

More important, Microsoft continues fully to stand behind its representations 
to this Court, it continues. To be clear, while some overlap was identified 
and some jobs were eliminated, Microsoft has structured and is operating the 
post-merger company in a way that will readily enable it to divest any or all 
of the Activision businesses as robust market participants in the unlikely 
event that a divestiture ultimately is ordered. This is precisely what 
Microsoft represented previously. 

Microsofts plans to lay off approximately 1,900 members of staff were 
revealed last month, and staff across the Xbox, Activision Blizzard and 
ZeniMax teams are reportedly affected. 

 Looking for some new games to play? You can find some excellent 
recommendations on our lists of the best Xbox Series X games and best PC 
games .



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Link to news story:
https://www.techradar.com/gaming/microsoft-claims-activision-was-already-plann
ing-significant-layoffs-before-its-acquisition-consistent-with-broader-trends-
in-the-gaming-industry


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