July 20, 2024
FTC Cries Foul Over Microsoft’s Activision Layoffs
FTC Cries Foul Over Microsoft’s Activision Layoffs

The Federal Commerce Fee is taking challenge with Microsoft latest layoffs of Activision Blizzard staff, saying the corporate is reneging on its promise.

The FTC was essentially the most decided opponent to Microsoft’s Activision acquisition, persevering with to contest the deal lengthy after the EU and UK signed off on it. In keeping with The Verge’s Tom Warren, the FTC says Microsoft’s announcement it could be shedding 1,900 staff—most of them Activision staff—flies within the face of the corporate’s claims pre-merger.

Warren posted a copy of the FTC’s letter on X:

“Microsoft reportedly has said that the layoffs have been a part of an ‘execution plan’ that would cut back ‘areas of overlap’ between Microsoft and Activision, which is inconsistent with Microsoft’s suggestion to this Courtroom that the 2 firms will function independently post-merger.”

The FTC is constant to battle the merger, hoping to win in courtroom and open the door to undoing it. It’s unclear if this newest flip of occasions will bolster the FTC’s case, however the company says the layoffs might make it tougher to roll again the deal if it does win its case.

“Furthermore, the reported elimination of 1000’s of jobs undermines the FTC’s capability to order efficient reduction ought to the pending administrative continuing end in a willpower that Microsoft’s acquisition of Activision violated Part 7 of the Clayton Act.”

This improvement is merely the most recent twist in what’s already one of the vital drawn-out sagas in tech merger historical past.