Activision Was Already Planning “Significant” Layoffs Independently of Acquisition, Microsoft Says

Activision Was Already Planning “Significant” Layoffs Independently of Acquisition, Microsoft Says

Microsoft accomplished its $69 billion acquisition of Activision Blizzard in October, although life underneath new possession has obtained off to a tough begin for the latter. Final month, Microsoft introduced that it was reducing 1,900 jobs throughout its total gaming division, with Activision Blizzard, Bethesda, and Xbox all set to be impacted.

Within the wake of the information of mass layoffs, the US’ Federal Commerce Fee (FTC) – which tried to have the acquisition blocked resulting from competitors considerations previous to its approval – filed a grievance with the ninth US Circuit Court docket of Appeals earlier this week, saying that the layoffs are “inconsistent with Microsoft’s suggestion that the 2 corporations will function independently post-merger”.

In response to the FTC’s recent grievance, Microsoft has despatched a letter to the court docket (by way of VGC), wherein it has claimed that, as has been the unlucky pattern within the video games business for a number of months operating, Activision Blizzard was planning on making “vital cuts” anyway, no matter whether or not or not its take care of Microsoft had gone by way of.

“In line with broader tendencies within the gaming business, Activision was already planning on eliminating a major variety of jobs whereas nonetheless working as an unbiased firm,” the corporate stated. “The current announcement thus can’t be attributed totally to the merger.”

As a part of Microsoft’s mass layoffs, it has emerged that Blizzard Leisure ended up cancelling its unannounced survival recreation after six years in improvement, whereas it was just lately reported that Name of Responsibility developer Sledgehammer Video games and Crash Bandicoot and Spyro studio Toys for Bob had additionally let go vital parts of their respective workforces.

The video games business’s wave ongoing wave of layoffs has been a devastating one. Over the course of 2023, greater than 6,000 folks within the business misplaced their jobs, and so far, 2024 has been considerably extra damaging, with over 6,300 job cuts already, lower than six weeks into the yr. Layoffs have been introduced at a lot of corporations, together with Riot Video games, Unity, Sega, Behaviour Interactive, Misplaced Boys Interactive, Black Forest Video games, CI Video games, Thunderful Group, Visible Ideas, and Folks Can Fly, amongst others.

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