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PC Gamer
PC Gamer
Andy Chalk

FTC hits Microsoft with federal complaint over game division layoffs

Microsoft logo.

The US Federal Trade Commission has filed a complaint with a federal appeals court over Microsoft's plan to lay off 1,900 employees from its gaming division, saying the move "contradicts" Microsoft's commitment to maintaining the studio's operational independence while the FTC pursues its case against the merger.

Microsoft completed its takeover of Activision Blizzard in October 2023, almost immediately after the UK's Competition and Market Authority reversed direction and approved the deal. The US situation is a little more complicated: The FTC moved to block the takeover but a request for a temporary injunction against it was denied, enabling Microsoft to move ahead with the takeover even though the FTC hadn't given it the green light.

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