Why layoffs?Microsoft faces scrutiny over thousands of gaming employee departures

Microsoft eventually received approval to acquire Activision Blizzard, but the company decided to lay off thousands of employees from its gaming division to adapt to the changes. Microsoft is currently facing questions about its decision to lay off about 1,900 employees, something antitrust regulators were worried about when they approved the deal to move forward.

The U.S. Federal Trade Commission (FTC) has the same concerns. They believe that Microsoft is making major changes to the newly acquired company, which may have a significant impact on the future of the enterprise and cause thousands of employees to lose their jobs.

The decision to shed employees also has a major impact on senior personnel from the Activision Blizzard team as well as the core team that has been working on future projects for the gaming giant. Microsoft reportedly cited business decisions as the reason for the layoffs and the need to reallocate resources to future projects with higher growth potential.

Regulators are undoubtedly concerned about the timing of job cuts after the deal closes. That being said, Microsoft isn’t the only tech giant to lose employees recently. Google, Meta, Amazon and more tech companies have been slashing their jobs over the past few months, with warnings from most of the brands suggesting more are expected in 2024 as they realign their corporate strategies to include artificial intelligence. Layoffs.

Microsoft’s deal with Activision may have been approved, as it appears the FTC will be keeping a close eye on the combined entity’s progress and any possible red flags could cause problems for both companies in the future.