FTC concerns about job cuts post-merger met with Microsoft’s defense citing pre-existing plans at Activision Blizzard
In response to criticism from the US Federal Trade Commission (FTC) regarding its planned layoffs following the Activision Blizzard acquisition, Microsoft has issued a statement clarifying its position. The company asserts that these layoffs cannot be solely attributed to the merger, highlighting Activision Blizzard’s pre-existing plans for significant job cuts.
The FTC raised concerns that Microsoft’s elimination of redundant positions post-merger could hinder its ability to divest the new business if required by regulators. Microsoft had previously assured the court that Activision Blizzard would be able to operate independently in the event of a potential split.
Addressing the FTC’s assertions, Microsoft stated that the FTC’s factual assertions were “incomplete and misleading.” The company emphasized that Activision Blizzard had already planned substantial job reductions while operating independently, aligning with broader trends in the gaming industry.
Microsoft reiterated its commitment to its previous representations to the court, emphasizing that it had structured the post-merger company to enable divestiture of any or all Activision businesses if necessary. The company affirmed that despite identified overlaps and job eliminations, Activision Blizzard would maintain operational independence.
In summary, Microsoft contends that Activision Blizzard’s ability to operate independently remains intact despite the layoffs, challenging the FTC’s concerns. The ongoing dispute between Microsoft and federal regulators suggests that the regulatory scrutiny surrounding the merger is far from resolved.