FTC criticizes Microsoft for laying off Activision Blizzard workers after claims it would operate independently
The FTC also says it would struggle to get aid to affected workers if a court later reversed the acquisition
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The US Federal Trade Commission has criticizedMicrosoftover recent layoffs at its game studios.
Last month, Microsoft announced it would be laying off 1,900 developers from its global workforce, impacting those at studios the technology giant owned. This included layoffs atActivision Blizzard, whichMicrosoft finalized the purchase oflast year in October 2023.
The FTC believes Microsoft laying off developers at Activision Blizzard contradicts its past messaging, from before it acquired the studio. As reported byBloomberg, the FTC hasfiled a letterwith the 9th US Circuit Court of Appeals calling into question Microsoft’s previous statements that Activision Blizzard would operate independently should it be acquired by Microsoft.
Microsoft previously said that the layoffs would reduce “areas of overlap” between itself and Activision Blizzard. This, the FTC highlights, is what’s chiefly inconsistent with Microsoft previously claiming that Activision Blizzard would operate independently post-acquisition.
“The reported elimination of thousands of jobs undermines the FTC’s ability to order effective relief,” the FTC stated in the letter, in the case of a court theoretically finding Microsoft’s acquisition of Activision Blizzard illegal later on.
The layoffs at Activision Blizzard are now continuing, and just earlier this week, Crash Bandicoot and Spyro studio Toys For Bob was hit with cuts, with a reported 86 developers laid off at the studio. Despite reports to the contrary,it appears Toys For Bob isn’t shutting down entirely, and will now operate entirely remotely, after its California-based studio was shuttered.
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Hirun Cryer is a freelance reporter and writer with Gamesradar+ based out of U.K. After earning a degree in American History specializing in journalism, cinema, literature, and history, he stepped into the games writing world, with a focus on shooters, indie games, and RPGs, and has since been the recipient of the MCV 30 Under 30 award for 2021. In his spare time he freelances with other outlets around the industry, practices Japanese, and enjoys contemporary manga and anime.
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