Why The Layoffs? Microsoft Faces Scrutiny Over Thousands Of Gaming Employees Leaving – News18

Microsoft lastly bought the nod to amass Activision Blizzard however the firm determined to cull 1000’s of workers from the gaming division to accommodate the adjustments. Microsoft is now going through questions on its determination to put off round 1,900 workers which is one thing that antitrust regulators had feared whereas giving the deal the nod to go forward.

The issues have been shared by the US Federal Trade Commission (FTC) who really feel that Microsoft is making drastic adjustments to the newly acquired firm which might have a huge impact on the way forward for the enterprise in addition to 1000’s of workers dropping their jobs.

The determination to churn workers additionally has a huge impact on the senior individuals who come from the Activision Blizzard staff, together with a core staff that has been engaged on future tasks for the gaming big. Microsoft has reportedly cited enterprise selections as the explanation for these layoffs and the necessity to reallocate sources into tasks which have a better development potential sooner or later.

The regulators are undoubtedly involved with the timing of those layoffs proper after the deal has gone by way of. Having mentioned that, Microsoft isn’t the lone tech big churning workers in latest occasions. Google, Meta, Amazon and extra tech firms have been on a layoff spree over the previous few months, and the warning from most of those manufacturers counsel extra layoffs are anticipated all through 2024 as they realign their firm technique with AI within the combine.

The Microsoft-Activision deal might need been cleared by it appears the FTC shall be maintaining a detailed on the developments on the merged entity and any attainable crimson flag might pose points sooner or later for the businesses.