Microsoft to Deal with FTC Over Massive Layoffs

The US Federal Trade Commission has taken action against Microsoft's plan to let go of nearly 2,000 employees. FTC has complained to a federal appeals court, stating that this action goes against Microsoft's promise to keep Activision Blizzard's operational independence, while the FTC continues its case against Microsoft and Activision Blizzard's merger.

Here's some context if you're out of the subject, Microsoft completed the acquisition of Activision Blizzard just a few months ago, despite the FTC's attempts to block the acquisition. Although the court rejected the FTC's request for a temporary injunction, allowing Microsoft to proceed with the deal, the FTC didn't give its approval. In court, Microsoft stated its intention to operate Activision Blizzard as "a limited-integration studio".

However, the tech giant announced massive layoffs of 1,900 employees, half of whom are developers from Activision Blizzard, just three months after the acquisition, and this has raised concerns for the FTC. The commission argues that this action "contradicts" Microsoft's previous statements to the court regarding the operational independence of Activision Blizzard.

It's not clear how the deal will turn out, but it seems that FTC doesn't have many chances here as the deal is already completed. However, we never know, only time will show.

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