FTC Urged to ‘Unwind’ Activision Blizzard Merger After Layoffs

U.S. Senator Elizabeth Warren is calling on the Federal Trade Commission (FTC) to reverse Microsoft’s acquisition of Activision Blizzard after Microsoft’s gaming division announced significant layoffs. Most of the impact was felt by Activision Blizzard, with the cancellation of Blizzard’s survival game and the termination of entire teams within the company.

Activision Blizzard layoffs described as a “bloodbath” by affected employees

Senator Warren took to Twitter to criticize the downsizing, reiterating her previous warnings about the merger. She wrote, “I warned that this deal would hurt workers. These layoffs are a stark reminder that corporate mergers are bad for workers. The FTC should keep up the fight to unwind this merger.”

Just 3 months after @Microsoft‘s merger with @Activision, 1,900 workers have lost their jobs.
I warned that this deal would hurt workers. These layoffs are a stark reminder that corporate mergers are bad for workers.
The @FTC should keep up the fight to unwind this merger. https://t.co/Nh6vpAXeYd
— Elizabeth Warren (@SenWarren) January 25, 2024

Employees at Activision Blizzard have characterized the layoffs as a “bloodbath” on social media. Reports suggest that Sledgehammer Games, the developer of Call of Duty, has lost over 25% of its employees. According to CharlieINTEL, the percentage of Sledgehammer layoffs is 25%, while Tom Henderson of Insider Gaming has indicated that the number is close to 30%.

Despite the completion of the merger, the FTC is still investigating the deal and aims to persuade the courts that Microsoft’s acquisition of Activision Blizzard is detrimental to competition and consumer choice.