Like when do big mergers like this not end in layoffs? The redundancy in management wouldn’t make sense. Like what does the FTC think Microsoft was going to do? 😆
I don’t think he was defending the company, more saying that OF COURSE they’re going to do big layoffs, it only makes sense, and so if you (the courts) don’t stop them, then well… You don’t blame a lion for hunting a gazelle, it’s just what they do.
The FTC knew it was coming, and tried to stop the merger. But they got shot down in the courts, because a judge believed Microsoft was going to be benevolent and not immediately lay off all of the acquired company’s employees.
This is the FTC’s way of publicly slapping the judge.
I don’t think I’ve seen a game studio acquisition happen without layoffs of some sort. Doesn’t make it right, but it does seem like a horrible routine.
“Well done, you’ve spent 75 billion to buy market share!!”
“Oh no, you would spend at least 230 million/year for these employees - that just won’t do”.
Nevermind the fact that 1900 roles also buys market share (and you could run 1900 people for 300+ years), but opex is opex and execs are bonused on margins.
And the worst part is they will then brag about how low their opex is to the employees that are still there in the quarterly all-hands, as if it isn’t representing how much money they are making but not paying to employees. Well, ok, the worst part is the doing rather than the bragging, but still.
Idk, I’m starting to think that the shamelessness of bragging to your employees that you’re fucking them over is worse. At the very least, the employees should feel insulted that they’re supposed to be excited about it.
For the unaware:
Capex=capital expenditures. These are the one-time purchases, which grow the business.
Opex=operating expenditures. These are the recurring costs of doing business. Payroll, utility payments, rent for office buildings, etc…
Basically, the stock market loves it when you buy things. Stock owners see it as growing the company, and therefore growing the value of the stock. But they hate operating expenditures, because those make the company seem less valuable; Buying Activision (capex) is great for stock prices, but paying their employees (opex) isn’t.
This is why big corporate acquisitions are usually immediately followed by huge rounds of layoffs for the acquired company. The new company owns the things, but doesn’t want the opex to show up on the next quarterly expense report. So they’ll usually gut the acquired company. Because they’re usually buying other companies for things like copyrights, patents, trade secrets, etc… If they were interested in the employees at the acquired company, they’d be using recruiting tactics and headhunting, instead of simply buying the entire company.
I don’t think I’ve seen a game studio acquisition happen without layoffs of some sort. Doesn’t make it right, but it does seem like a horrible routine.
It really depends on if the layoffs were done because they were duplicate people for the same job position, versus clearing house so that the stockholders are happier by having better profits.
Yeah but 1,900 staff, come the fuck on that’s a mass exodus not a layoff. I’m in a company of 300+ people and it’s a HUGE number of people, I can hardly process over 6x as many layoffs…
This also pretty shitty on account that Kotick initiated loads of layoffs just before acquisition talks were even public. This is usual practice to make the company seem more valuable.
Gigantic looks something like Smite? Is that what I am getting here? I was hoping for an Overwatch / Team Fortress clone (unironically). I really need some more competition for this type of game.
I’m crying I loved this game so much, even enough to pilfer through the convoluted mess it is to join a private server lobby to continue playing. Ahh I’m so excited!
polygon.com
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