'Activision Was Already Planning 'Significant' Layoffs', Says Microsoft

These latest job cuts will be affection around 8 per cent of the overall Microsoft gaming division which houses around 22,000 employees.

Microsoft defended the merger by saying, "The recent announcement thus cannot be attributed fully to the merger."

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Microsoft has been under the scanner of the US Federal Trade Commission (FTC) for laying off 1,900 employees from the gaming company Activision Blizzard and Xbox. The company responded to the US FTC by saying that Activision Blizzard was planning to lay off a number of people before Microsoft acquired it. The gaming company was acquired recently for $68.7 billion.

Microsoft in a statement said, "Activision was already planning on eliminating a significant number of jobs while still operating as an independent company." "The recent announcement thus cannot be attributed fully to the merger."

The FTC is appealing a district court's decision to not block the acquisition. The Verge quoted a Microsoft spokesperson as saying, "In continuing its opposition to the deal, the FTC ignores the reality that the deal itself has substantially changed. Since the FTC lost in court last July, Microsoft was required by the UK competition authority to restructure the acquisition globally and therefore did not acquire the cloud streaming rights to Activision Blizzard games in the United States."

The spokesperson added, "Additionally, Sony and Microsoft signed a binding agreement to keep Call of Duty on PlayStation on even better terms than Sony had before."

Lay Off To Affect 8 Per Cent Of Microsoft's Gaming Division

These latest job cuts will be affection around 8 per cent of the overall Microsoft gaming division which houses around 22,000 employees.

Microsoft Gaming CEO Phil Spencer in an internal memo said, "We have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team."

Activision Blizzard President Mike Ybarra has also left the company. "I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players' lives. It's an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted - this is in no way a reflection on your amazing work," Ybarra posted on X.

I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…

— Mike Ybarra (@Qwik) January 25, 2024