Roman GłogulskiLast month, technology giant Microsoft announced plans to lay off at least 1,900 employees from Activision Blizzard and Xbox, which accounts for approximately 8% of the total number of employees in Microsoft’s gaming division, which employs around 22,000 people. This decision is a result of Microsoft’s recent acquisition of Activision Blizzard.
In response to the Federal Trade Commission’s allegations regarding the layoffs, Microsoft has filed explanations in court. The company stated that while some of the layoffs are due to overlapping teams between Microsoft and Activision, it is still operating its newly acquired unit in a way that allows for its potential separation if the court decides to do so.
Microsoft also added that the layoff plans were already being considered by Activision Blizzard before the merger with Microsoft. The company stated that the number of expected layoffs is significant and reflects overall industry trends in the gaming sector.
The acquisition of Activision Blizzard by Microsoft was finalized in October of last year after a lengthy legal battle in the UK and the US. Despite the controversies surrounding the acquisition, Microsoft has emphasized that it will continue to operate Activision Blizzard as an independent entity.
The decision by Microsoft to lay off employees is inevitable in corporate mergers, but this action has raised concerns from the Federal Trade Commission, which claimed that Microsoft promised to maintain the independence of Activision Blizzard after the completion of their merger. The FTC will now monitor the situation to ensure that Microsoft fully fulfills its commitments.
FAQ Section:
1. What were Microsoft’s plans for the layoffs?
Microsoft announced plans to lay off at least 1,900 employees from Activision Blizzard and Xbox, which accounts for approximately 8% of the total number of employees in Microsoft’s gaming division.
2. Why did Microsoft decide to lay off employees?
The decision to lay off employees was a result of Microsoft’s recent acquisition of Activision Blizzard and overall trends in the gaming industry.
3. Did Microsoft provide explanations in response to the Federal Trade Commission’s allegations?
Yes, Microsoft has filed explanations in court in response to the Federal Trade Commission’s allegations regarding the layoffs.
4. How does Microsoft plan to deal with its newly acquired unit?
Microsoft is still operating its newly acquired unit, Activision Blizzard, in a way that allows for its potential separation if the court decides to do so.
5. What controversies surrounded Microsoft’s merger with Activision Blizzard?
The acquisition of Activision Blizzard by Microsoft was controversial and involved a lengthy legal battle in the UK and the US.
6. What is the Federal Trade Commission?
The Federal Trade Commission is a government institution responsible for consumer protection and preventing unfair business practices in the United States.
7. What are the further steps of the Federal Trade Commission regarding Microsoft’s decision?
The FTC will monitor the situation to ensure that Microsoft fully fulfills its commitments to maintaining the independence of Activision Blizzard after the merger.
Definitions:
1. Activision Blizzard – a company engaged in the production of computer games that was acquired by Microsoft.
2. Xbox – the brand of Microsoft’s video game consoles.
Suggested Related Links:
– Microsoft Poland
– Activision
– Xbox
