With the Federal Trade Commission (FTC for short), Microsoft enthusiastically approved the acquisition of Activision Blizzard. Despite the completion of the deal, US authorities have filed an appeal and are closely monitoring the company’s actions. Recently drew attention to mass layoffs at the tech giant’s gaming division. This contrasts with how Microsoft planned to run the Xbox division after purchasing the publisher of Call of Duty, Diablo, World of Warcraft or Candy Crush.
The purchase of Activision Blizzard for $68.7 billion (total amount was $75.4 billion) was completed in October last year. It started in January of this year dismissal of 1900 employees from the divisions of Xbox, Bethesda and Activision Blizzard. That’s about 8% of the gaming division’s 22,000 employees.
According to the Federal Trade Commission, this behavior is inconsistent because Microsoft stated in court that both companies will operate independently, will support employee rights, care for their well-being and will not fire employees. However, in a memo to employees, Xbox chief Phil Spencer announced a restructuring and streamlining of the entire division after identifying areas of overlap, prioritizing and identifying the best opportunities for growth.
“The closure of thousands of jobs undermines the Federal Trade Commission’s ability to take effective remedies if ongoing administrative proceedings determine that Microsoft’s acquisition of Activision violated Section 7 of the Clayton Act,” the FTC said. This is an antitrust law that prohibits mergers and acquisitions that restrict competition.
Microsoft did not specify which teams would be affected by the layoffs. Later there were reports of serious cuts to the team responsible for the boxed versions of games for the Xbox. at Activision Blizzard support. A large number of the company’s community managers lost their jobs.
The layoffs affected Activision Blizzard as Endless Chamber (minus 30% people), Sledgehammer Games (the test manager had to lose his entire team minus more than 25% of the people in general), High Moon Studios (minus 10%), Binox or Toys for Bob. The latter team is responsible for Crash (most recently Crash Team Rumble and assistance in Call of Duty: Modern Warfare 3). According to the latest news, he had to say goodbye to 86 employees, and his offices were closed. Other developers must work from home.
Source :Indian TV
