Microsoft—FTC challenged 1,900 gaming layoffs as violating merger promises made to acquire Activision
In January 2024, Microsoft laid off 1,900 employees from its gaming division, including roles at Activision Blizzard, ZeniMax, and Xbox Game Studios. The FTC argued these cuts violated assurances Microsoft made during the acquisition review, where the company claimed the merger would be vertical (not requiring layoffs). FTC lawyer Imad Abyad cited that layoffs to address 'areas of overlap' directly undermined Microsoft's vertical acquisition claims. Former FTC Chair Lina Khan stated the acquisition 'has been followed by significant price hikes and layoffs, harming both gamers and developers.'
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | secondary | -0.50 |
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.443 | ||
Score = avg(topic contributions) × significance (medium ×1) × confidence (0.59)
Evidence (1 signal)
FTC challenged 1,900 gaming layoffs as violating merger promises made to acquire Activision
In January 2024, Microsoft laid off 1,900 employees from its gaming division, including roles at Activision Blizzard, ZeniMax, and Xbox Game Studios. The FTC argued these cuts violated assurances Microsoft made during the acquisition review, where the company claimed the merger would be vertical (not requiring layoffs). FTC lawyer Imad Abyad cited that layoffs to address 'areas of overlap' directly undermined Microsoft's vertical acquisition claims. Former FTC Chair Lina Khan stated the acquisition 'has been followed by significant price hikes and layoffs, harming both gamers and developers.'