Microsoft Denies Allegations of Reneging on Activision Job Cuts Amid Speculation of Microsoft Layoffs Today

Microsoft has disputed claims by US regulators that it violated agreements by cutting jobs when Activision Blizzard was acquired—the most significant gaming deal to date.

Microsoft announced layoffs of 1,900 in January, three months after the $69 billion (£56 billion) deal was finalised.

This move, according to the Federal Trade Commission (FTC), “contradicts” Microsoft’s previous statements.

Microsoft made it clear, nevertheless, that their acquisition did not start the idea of job cuts.

As the BBC saw in a company filing with the US court, Activision claimed that “in line with broader patterns within the gaming sector, Activision had already intended to eliminate a substantial portion of its workforce while functioning as an independent entity.”

“Hence, the recent declaration cannot be solely attributed to the merger.”

Thanks to the controversial pact, Microsoft layoffs control popular Electronic art games like Candy Crush, World of Warcraft, and Call of Duty today.

Nevertheless, the FTC is still pleading with the Court of Appeals to get involved in the transaction to consider potential anti-trust issues.

If the regulator wins its case, it may still approve the merger and decide to split Activision Blizzard into different companies or refuse the deal altogether.

If the lawsuit were to prevail, the FTC argued that the announced Microsoft layoffs today would heighten the difficulty of undoing the merger, underscoring the need for an injunction.