Tag: layoffs
Take-Two Announces “Significant Cost Reduction” But Says It’s Not Layoffs
Take-Two has recently announced that it is working on a “significant cost reduction” but has assured the public that it won’t be laying off its employees for now.
The news comes from a Take-Two earnings report where the company had stated:
“We are currently working on a significant cost reduction program across our entire business to maximize our margins while still investing for growth. These measures are incremental to, and more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our outstanding release schedule.”
Microsoft’s gaming layoffs include 86 jobs at Skylanders studio Toys for Bob
Microsoft’s post-acquisition layoffs at Activision Blizzard have already caught the FTC’s eye. Now we know more about which subsidiary studios will take the hit. First reported by the San Francisco Chronicle (via Eurogamer), California WARN notices list 86 upcoming scheduled layoffs at Skylanders maker Toys for Bob and 76 cuts at Call of Duty: Vanguard developer Sledgehammer Games.
California requires companies to notify the state of upcoming layoffs, thanks to a 1988 law mandating 60 days’ notice about staffing cuts (if they reach specific thresholds). The latest WARN alerts for Activision Blizzard report 86 upcoming cuts at an address in Novato, CA — matching Toys for Bob’s offices — effective March 30. In addition, the San Francisco Chronicle reports on a California state filing indicating Toys for Bob’s offices will close.
Toys for Bob is known for spearheading the “toys-to-life” concept, which Nintendo later embraced with its Amiibos. The Activision Blizzard subsidiary’s most successful projects include the Spyro the Dragon series, Skylanders and Crash Bandicoot 4: It’s About Time. The Gamer reported in late January that Toys for Bob would cut 40 percent of its staff, which would have only been around 35 jobs.
In addition, another 76 Activision Blizzard employees will lose their jobs (also on March 30) at an address in San Mateo, CA, matching the headquarters of Sledgehammer Games. The studio has developed or contributed to several Call of Duty games, including CoD: Modern Warfare 3 (2011), CoD: Advanced Warfare (2014), CoD: WWII (2017) and CoD: Vanguard (2021). The studio was founded in 2009. Insider Gaming reported in January that Sledgehammer Games would close its offices and go fully remote.
In late January, Microsoft said it would slash 1,900 jobs across its Xbox, Activision Blizzard and ZeniMax (Bethesda) teams. The Federal Trade Commission (FTC) filed a complaint in a federal appeals court on Wednesday, arguing that the substantial round of layoffs “contradicts Microsoft’s representations in this proceeding.” The government agency asked for a temporary pause of Microsoft’s Activision Blizzard acquisition, which appeared all but locked up after the UK’s Competition and Markets Authority approved the $69 billion purchase in October.
An estimated 10,500 gaming industry workers fell victim to layoffs in 2023. We’ve already seen 6,000 more in 2024, only slightly over a month into the new year. It’s been part of a devastating year-plus of broader tech-industry layoffs.
This article originally appeared on Engadget at https://www.engadget.com/microsofts-gaming-layoffs-include-86-jobs-at-skylanders-studio-toys-for-bob-182241293.html?src=rss
Microsoft denies it went back on its word over layoffs
Toys for Bob Future Unclear Amid Studio Closure and Layoffs
The FTC isn’t too happy with Microsoft’s Activision Blizzard layoffs
And it’s still looking to reverse the already-completed deal
FTC accuses Microsoft of misrepresenting its Activision Blizzard plans after layoffs
One week after Microsoft laid off nearly 2,000 employees in its gaming division, the Federal Trade Commission is accusing Microsoft of contradicting its pledge to allow Activision Blizzard to operate independently post-acquisition. The FTC filed a complaint in a federal appeals court on Wednesday, arguing that last week’s downsizing, which affected employees of Activision Blizzard, “contradicts Microsoft’s representations in this proceeding.” The FTC is asking for a temporary pause of Microsoft’s acquisition of Activision Blizzard as it further investigates potential antitrust issues.
In its arguments to the FTC over the past two years, Microsoft said it would treat Activision Blizzard as a vertical acquisition and suggested that it wouldn’t need to institute layoffs, since there would be no redundancies. On January 30, Microsoft announced it was cutting 1,900 jobs across Activision Blizzard, ZeniMax and Xbox after identifying “areas of overlap” specifically between Microsoft and Activision Blizzard. This discrepancy is the core of the FTC’s complaint.
“Microsoft’s recently-reported plan to eliminate 1,900 jobs in its video game division, including in its newly-acquired Activision unit, contradicts the foregoing representations it made to this Court,” the FTC’s complaint said. “Specifically, Microsoft reportedly has stated that the layoffs were part of an ‘execution plan’ that would reduce ‘areas of overlap’ between Microsoft and Activision, which is inconsistent with Microsoft’s suggestion to this Court that the two companies will operate independently post-merger.”
Though the UK’s Competition and Markets Authority approved Microsoft’s $69 billion acquisition of Activision Blizzard in October, the FTC hasn’t seen satisfaction regarding its own antitrust concerns. The FTC is still challenging the acquisition, which means there’s a possibility that Microsoft will be forced to divest all or part of Activision Blizzard.
In Wednesday’s complaint, the FTC argued that the recent layoffs also undermine its own ability to order relief for employees who were negatively affected in the acquisition.
Microsoft’s layoffs join an avalanche of mass firings in the video game industry, specifically in the past few months. An estimated 10,500 people in video games lost their jobs in 2023 — and already in 2024, 6,000 workers have been laid off.
This article originally appeared on Engadget at https://www.engadget.com/ftc-accuses-microsoft-of-misrepresenting-its-activision-blizzard-plans-after-layoffs-215502314.html?src=rss
The impact of 16,000 games industry layoffs, in one chart
FTC hits Microsoft with federal complaint over game division layoffs
WWE, NBA and Lego 2K Drive developers reportedly hit by second wave of layoffs in less than six months
Visual Concepts Austin, the 2K Games studio behind sports franchises including WWE and NBA, as well as last year’s kart racing game Lego 2K Drive, has reportedly laid off a number of employees. The cuts come fewer than six months after the last round of layoffs at the Texas outlet.