Microsoft has officially responded to recent FTC claims against the company’s decision to lay off Activision employees. This was first reported at The Verge.
Last month, Microsoft laid off 1,900 employees within its video game division. The US FTC filed a court notice regarding the layoffs, claiming that Microsoft’s move contradicts the representations it made to the court.
Microsoft replied that Activision was already planning on eliminating a significant number of jobs while still operating as an independent company. Therefore, Microsoft’s merger cannot be solely to blame for the layoffs in question.
Microsoft also says that the FTC’s factual assertions are incomplete and misleading. After the merger, Microsoft is operating in a way that allows the company to divest any or all of the Activision businesses as robust market participants.
The court filing also says that Activision’s existing layoff plans align with broader trends that have recently devastated the industry. There have been plenty of layoffs this year, affecting studios of all sizes.
It is plausible that Activision already intended to lay off employees. However, it remains to be seen if this will satisfy the FTC. Microsoft also stated that the layoffs arose as the company identified areas of overlap, citing the need for a sustainable cost structure.
Switch 2 Reportedly Coming This Year With 8-inch LCD Screen, Claims Analyst