Microsoft Fires Back at FTC's Accusation on Layoffs in Activision Blizzard Legal Battle

Microsoft's legal counsel has responded to the accusations leveled yesterday by the FTC within the legal battle for the acquisition of Activision Blizzard.

[XiNatsuDragnel]

Microsoft thinks they did right thing did they? Imo you could've merge Activision into other sectors.

[Jin_Sakai]

When a mega corporation is more powerful than the federal agency. Who do we have left to fight against these practices?

[Eonjay]

Microsoft isn't more powerful than the government and that's why you see them giving so much money to politicians. It cliche, but it's up to us to select representation that won't cave to corporate donors.

But yeah Microsoft doesn't have any defense against layoffs. No one made them do it and the went ahead with the merger knowing quite clearly that it would impact employees.

[jznrpg]

@Eonjsy if they weren’t more powerful the money wouldn’t work.

[Inverno]

Apparently the layoffs were going to happen either way, and I'm inclined to believe it because Activision is beyond scummy. I'm instead wondering why Acti hired so many people in the first place.

[theindiearmy]

Same reason a lot of tech hired a lot during covid. People were staying home, consuming a lot of personal media (buying more games, watching more shows, etc.) Companies thought investing the increased revenue in more talent would reap benefits long term. Turns out, that wasn't the case. It just led to the companies being bloated. But in a lot of cases, they were bloated even before the covid hiring sprees. Activision had 13,000 employees this time last year. Nintendo has 7,000. Keep in mind this doesn't include contract or outsourced work, which I guarantee you Activision does a lot more of than Nintendo. Makes you wonder what the hell Activision needs so many people for. They don't even make a console like Nintendo does. It sucks that people are losing their jobs, but in my opinion, a lot of these companies are still bloated even after the layoffs.

[Killa78]

Of course it was always going to happen... This deal was such a joke.

[gold_drake]

i dont believe that for a second.
activision had their hands full with upcoming cod titles and current ones before the merger.

and mobile games ha

[Abriael]

Yeah totally. In a year in which everyone's firing developers left and right, Activision *of all companies* was gonna avoid that.

My god.

[gold_drake]

what are u talking about ?
the merger proceedings went on for more than a year before it was actually over.

before that, there were no major layoffs. and activision was busy making games. not just one mind you.

maybe try and think for second before u comment something.

[Abriael]

Imagine thinking that a company like Activision would not partake in this layoff fest. Do you miss Bobby Kotick perchance? 🙄

The only one who's not thinking is you. All the big companies doing layoffs are "busy making games." That doesn't mean they're not laying off people. Take-two announced today that they're gonna have a big cost reduction plan coming (IE: many more layoffs) and they have 52 games in development.

You really can't see past your console wars, can you? 🤨

[gold_drake]

its ok, you dont quite seem to understand.

bless ya.

[Hofstaderman]

@Abriael come next week there will be no more console wars.

[DarXyde]

So I hate this acquisition. It's a testament to Microsoft just buying things instead of building things properly. The layoffs after an acquisition is grimy and it's clear that there was so little consideration for the talent that they bought the damn company above market price and STILL didn't add any labour protection provisions to the deal, which tells you this was always for bottom lines and fat execs.

.... But that being said...I can't say I disagree with Microsoft's argument here. Using the layoffs as an angle on the matter of monopolistic practice doesn't make sense. It does appear the FTC is moving the goalpost with this statement.

Perhaps others see something I don't?

[Profchaos]

Microsoft reportedly has stated that the layoffs were part of an 'execution plan' that would reduce 'areas of overlap' between Microsoft and Activision, which is inconsistent with Microsoft’s suggestion to this Court that the two companies will operate independently post-merger."

In a nutshell Microsoft claimed that abk would operate independently but the recent firings were a result of overlap contradictory to their statements made to the FTC during the acquisition.

Also to this ms countered the FTC argument claiming that the deal has changed because of the EU changes required.

Sounds like Microsoft are saying whatever they can to get out of trouble so yes I can see why the FTC is coming after them

[frostypants]

Critics: "If this deal goes through mass layoffs will follow. They always do."

MS: "Nuh uh."

(deal goes through)

(mass layoffs happen)

MS: "Why are you so angry? Total coincidence."