**Microsoft Responds to FTC Claims Regarding Activision Layoffs**
*Microsoft has released a statement in response to recent claims made by the US Federal Trade Commission (FTC) against the tech giant’s decision to lay off employees from Activision.*
**FTC Alleges Microsoft’s Merger Contradicts Previous Representations**
*The FTC claimed that Microsoft’s layoffs “contradict the foregoing representations it made to this Court” following the acquisition of Activision Blizzard.*
**Microsoft Defends Actions, Argues Layoffs Were Already Planned**
*In its response, Microsoft stated that Activision had already planned on eliminating a significant number of jobs even before the merger.*
**Layoffs in Context: Industry Trends and Recent Instances**
*The court filing also highlights that the layoffs align with broader trends in the gaming industry, as several studios have recently undergone significant workforce reductions.*
*Last week, Ubisoft announced it would lay off 61 employees. Smaller studios like Artificer laid off about half of their team, while CI Games let go of approximately 30% of their staff last month.*
**Microsoft’s Ability to Divest Activision Businesses Post-Merger**
*The filing also notes that Microsoft, as a result of the merger, can now operate in a way that allows for the divestment of any or all Activision businesses as robust market participants.*
**Overlap and Cost Structure**
*Microsoft’s statement also reiterates that the identified areas of overlap between teams led to the layoffs, as well as the need for a sustainable cost structure.*
**More Gaming News: Sonic the Hedgehog Spin-Off Live-Action Series in Development**
*For more gaming news, check out our latest article on the new Sonic the Hedgehog spin-off live-action series in development.*
