Microsoft Defends Layoffs Amidst Acquisition
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. In a letter to the U.S. Court of Appeals for the Ninth Circuit, the FTC alleged that the layoffs were inconsistent with Microsoft’s suggestion that the two companies will operate independently post-merger.
Response from Microsoft
Microsoft responded to these claims by stating that the FTC’s “factual assertions are incomplete and misleading,” and that the recent layoffs can’t be “attributed fully” to the acquisition. The company argued that Activision was already planning significant job cuts while still operating as an independent entity, and therefore, the recent announcement cannot be solely attributed to the merger.
The response further emphasized Microsoft’s commitment to its previous representations to the Court. It assured that 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 if a divestiture is ordered.
Microsoft’s plans to lay off approximately 1,900 staff members last month reportedly affected teams across Xbox, Activision Blizzard, and ZeniMax.
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