With its recent investments, Microsoft has once again become one of the most valuable companies in the world, but it has once again made headlines with a dismissal scandal. The company, which acquired Activision Blizzard for $60.4 billion, laid off 1,900 employees in January, attracting the attention of the Federal Trade Commission. Here are all the details…
Microsoft dismisses employees again!
It is known that Microsoft has been heavily involved in layoffs at other companies it has acquired. However, this trend has been quite common in Silicon Valley recently. Technology companies that heavily recruited during the Covid pandemic began layoffs as the economic growth brought by the pandemic waned.
The American Federal Trade Commission alleges that despite Microsoft’s guarantee not to interfere with the workforce in its agreement to acquire Activision Blizzard, the company made an unlawful decision by not keeping this promise. If the company is found guilty, it may be required to pay substantial compensation to the employees it laid off.
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Phil Spencer, the head of Microsoft’s Gaming Division, stated in his announcement that they decided to continue with fewer employees in their budget planning for 2024. He said that although making such a decision was quite difficult, it was necessary to accelerate the company’s growth in the gaming sector.
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