There will be 1900 layoffs at Activision, according to Microsoft US FTC.

For its role in the mass layoff of 1,900 workers at Activision Blizzard and Xbox, Microsoft has come under fire from the US Federal Trade Commission (FTC). In their response to the US FTC, the business stated that prior to Microsoft’s acquisition, Activision Blizzard had intentions to lay off some employees. A sum of $68.7 billion was just paid to acquire the gambling company.

A statement from Microsoft stated, “Activision was already planning on eliminating a significant number of jobs while still operating as an independent company.” “The recent announcement thus cannot be attributed fully to the merger.”

An appeal has been filed by the FTC against the rejection of the transaction by a district court. According to a Microsoft spokesman, who talked to The Verge, the FTC is ignoring the fact that the agreement has changed significantly by continuing to oppose the purchase. Microsoft refrained from acquiring the cloud streaming rights to Activision Blizzard games in the United States after being compelled by the UK competition regulator to restructure the acquisition globally following the FTC’s court loss last July.

According to the spokesman, “Additionally, Sony and Microsoft signed a binding agreement to keep Call of Duty on PlayStation on even better terms than Sony had before.”

Unemployment to Impact 8% of Microsoft’s Gaming Business

Out of a total of over 22,000 workers in Microsoft’s gaming group, these most recent layoffs will affect about 8% of the workforce.

The CEO of Microsoft Gaming, Phil Spencer, announced in an internal memo, “We have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team.”

Also departing is Mike Ybarra, president of Activision Blizzard. “I would want to express my gratitude to all those who are affected by this decision today for the significant impact they have had on their teams, Blizzard, and the lives of gamers. “Today is a very tough day, and my focus and strength will be on all the incredible people affected; this in no way diminishes the incredible work you do,” Ybarra wrote on X.