Technologies
Microsoft promises to change toxic work culture at Activision Blizzard
The tech giant knows it is facing turmoil within its new acquisition.
Over the past couple years, employees’ public accounts of toxic work environments have led to reckonings around Silicon Valley and promises from management to be better. On Tuesday, Microsoft made a similar pledge, though not for itself. The tech giant pointed to the litany of abuse and harassment allegations at its latest acquisition target, game maker Activision Blizzard, and promised that behavior would no longer be tolerated.
Amid Microsoft’s announced plans to buy Activision Blizzard for the eye-popping amount of nearly $69 billion in cash, the tech giant’s leaders spoke the usual pomp about how important the deal was. Microsoft would be bolstering its already enormous Xbox video game division with the teams behind some of the most popular franchises in the world, including the online battle games Overwatch and Call of Duty, as well as the fantasy behemoth World of Warcraft and mobile mainstay Candy Crush.
But Microsoft CEO Satya Nadella also quickly pivoted to acknowledge that he isn’t just buying a company and its brands. Microsoft will also be taking over a sprawling organization under intense scrutiny over public claims of harassment, discrimination and more, all tolerated for years in an alleged “bro culture” atmosphere. On a conference call with investors shortly after announcing the purchase, Nadella discussed how he’s changed Microsoft’s cutthroat ways and how his lieutenant Phil Spencer would do the same with Activision Blizzard.
“The culture of our organization is my No. 1 priority,” Nadella said during his introductory remarks. “This means we must continuously improve the lived experience of our employees and create an environment that allows us to constantly drive everyday improvement in our culture.”
In doing so, he effectively promised to turn around a company that, while successful, is engulfed in scandal. “We are supportive of the goals and the work Activision Blizzard is doing and we also recognize that after the close, we will have significant work to do in order to continue to build a culture where everyone can do their best work,” he said in a thinly veiled criticism of past leadership. “It requires consistency, commitment, and leadership that not only talks the talk but walks the walk.”
It’s a tall order for Microsoft and Nadella to take on. But those who’ve watched his work say he and his lieutenants may be among the best suited to pull it off. And that’s in part because of how much Microsoft itself has changed.
Just a decade ago, Microsoft was seen largely as a monopolistic force in the computer world, reinforced through its toxic work culture. The company’s ruthlessness both inside and out were so widely documented over the years that a cartoonist once drew an organizational chart depicting Microsoft’s divisions as warring gangs pointing guns at one another. And when Google went public in 2004, it established a corporate ethos that became as much mantra as it was a referendum on Microsoft: “Don’t be evil.“
In 2014, shortly after Nadella was appointed as Microsoft’s third CEO, he set about for a fix. In his book Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone, Nadella described how he’d inherited a senior leadership team that was “more like a group of individuals” operating in silos. He asked each to read Marshall Rosenberg’s Nonviolent Communication, a guide to building compassion in organizations. Over time, he said, executives grilled and sniped at each other less, and supported one another more.
Nadella still stumbled, famously giving an “inarticulate” answer in 2014 when asked for advice for women seeking a raise while he was being interviewed on stage at the Grace Hopper Celebration for women in tech. Four years later, when CNET Editor-in-Chief Connie Guglielmo asked him to try again, Nadella said people need to advocate for themselves and find allies who won’t accept the status quo. He also said it’s on leaders, like him, to listen to those advocates.
With Activision Blizzard, Nadella said he’ll rely on Spencer, head of Microsoft Gaming and the Xbox division. Nadella described Spencer as having “demonstrated leadership driving both gaming business success as well as cultural change.” Activision Blizzard CEO Bobby Kotick, who was accused in a blockbuster Wall Street Journal investigation of having at times ignored, covered up and even participated in bad behavior at the company, told employees in a conference call published by the Washington Post Thursday that he will remain in his job until the deal closes in June 2023 and any longer Microsoft wishes him to stay.
The Activision Blizzard King Workers Alliance, which helped organize walkouts and protests over the past six months, tweeted a statement saying its efforts wouldn’t end with Microsoft’s acquisition.
“We remain committed to fighting for workplace improvements and the rights of our employees regardless of who is financially in control of the company,” the group tweeted Tuesday. “Whatever the leadership structure of the company, we will continue our push to #EndAbuseInGaming.”
Microsoft and Activision declined to make executives available for comment.
Under pressure
In an odd way, Activision Blizzard’s cultural issues appear to have driven the company into Microsoft’s hands. Activision Blizzard’s stock was floating near all-time highs last year until July, when it was sued by the California Department of Fair Employment and Housing, which accused the gaming giant of discriminating against its female workforce and fomenting a toxic work culture. The suit quickly triggered public letters from employees that criticized the company’s leadership, followed by employee walkouts and online activism.
Kotick, according to the Journal’s reporting, was aware of many of the issues outlined in the suit but reportedly failed to inform the company’s board of directors of “everything he knew,” including a 2018 settlement with a former employee at one of Activision’s studios who was allegedly raped by a supervisor. Kotick at the time said the Journal’s article “paints an inaccurate and misleading view of our company, of me personally, and my leadership,” a sentiment repeated by the company’s spokespeople.
Still, investors were unconvinced, pushing the company’s stock down as much as 40% before Microsoft’s purchase was made public, for the same $95 per share that the stock was worth just a year ago.
Carolina Milanesi, an analyst at Creative Strategies who’s watched Microsoft’s moves closely over the years, noted how often Microsoft discussed culture throughout its announcements on Tuesday, both by Nadella and Spencer, the latter of whom said, “We believe firmly that the great teams at Activision Blizzard have their best work in front of them, and we’re looking forward to making sure they feel supported, safe and engaged in every aspect of their work going forward.”
The focus on culture was “spot on,” Milanesi said. “The problem was with management, not the employees,” she added. “You get rid of management and put the employees in a good environment.”
Microsoft also published headshots of its gaming division’s leadership in connection with the announcement, and Milanesi noted that half the roles were filled by women and reflected racial diversity as well, an unusual sight in tech land. “I don’t think it would have been a possibility for them to keep the old management on” at Activision, she said. “Especially how employees responded, clearly it wasn’t good for the company.”
Though Kotick may not become a Microsoft employee, he will be paid a generous sum. His stock holdings alone will be worth nearly $400 million.
New game
Whether Microsoft can right Activision’s ship is still an open question, even if its executives so far have “talked the talk,” as Nadella noted. It may help that Microsoft has faced its own reckonings over the years, both in a 2015 class action discrimination suit and again in 2019 when employees protested its own “boys club” culture.
Microsoft’s HR head, Kathleen Hogan, wrote to employees following the 2019 revelations that she was “appalled and sad to hear” about their experiences and agreed that these problems must be resolved as a company. Microsoft shared the email publicly, in which Hogan said, “We must do better.”
So far, it appears Microsoft’s made headway. Nine out of 10 employees who left reviews on Glassdoor said they’d recommend working at Microsoft to a friend, and 97% approved of Nadella’s work as CEO.
“The deal and a renewed commitment to culture should enable Activision Blizzard to eventually move beyond the in-house issues that have surfaced,” Wedbush Securities analyst Michael Pachter wrote in a message to investors after Microsoft’s announcement. “We think that Microsoft’s intolerance of workforce discrimination and harassment will overwhelm any issues that remain at Activision.”
One other thing that may help is Microsoft’s corporate mission. The tech giant’s taken clear stands on not just harassment but also human rights and other global and political issues that many game companies have either avoided or outright mishandled. Activision Blizzard itself was harshly criticized for its reaction against a competitive gamer who expressed support for democratic protests in Hong Kong in 2019.
“Many executives from the games industry have always been on the fringes and haven’t had to think much about these things,” said Joost van Dreunen, a professor at NYU Stern School of Business and author of the book One Up: Creativity, Competition, and the Global Business of Video Games. “Microsoft has these questions answered. They know their place, and they have it thought through.”
To him, Microsoft also appears to be walking the walk of its Xbox division’s “for everyone” mantra, from its efforts to take on harassment in the gaming community to initiatives like its Xbox Adaptive Controller for disabled players.
“You don’t see that as much at Activision,” he said. At least not yet.
Technologies
Trump says MAGA Inc. PAC will pay for controversial TV ads that government funded
The New York Times reported “Trump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.”
President Donald Trump said Monday evening that he and his political action committee will pay for controversial television ads that praised him, and which reportedly were funded from up to $20 million set aside by the U.S. Department of Homeland Security.
The White House later clarified that the super PAC â MAGA Inc. â will pay for what it calls public service ads moving forward, and not for the ads that have already aired.
Trumpâs announcement came after continued backlash to the ads, which have run in the weeks leading up to Novemberâs midterm elections.
Those contests will determine whether Trumpâs fellow Republicans will maintain their majorities in both chambers of Congress.
Critics say the ads mirror Republican campaign talking points. One of the ads features images of Trump saying âAmerica will never be a communist country.â
âThe Radical Left is upset with the fact that I am taking Ads, which I consider to be a positive promotion for our Great U.S.A., and paying for them with U.S.A. money,â Trump said in a post on Truth Social on Monday.
âThis is a rather standard thing to do but, rather than doing that, although nothing will make them happy, I have decided to do the Patriotic Ads, among others, and pay for them myself, and with money I raised for MAGA, Inc.,â Trump said.
AdImpact has tracked roughly $9.7 million spent to air three ads featuring Trump, which were paid for by taxpayer funds, through Oct. 5.
Trumpâs announcement came three days after The New York Times, citing people familiar with the matter, reported that âTrump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.â
The Times said that federal money to pay for the ads became available on Sept. 19, âwhen the Office of Management and Budget shifted $20 million in Customs and Border Protection funds to a budget category called One Big Beautiful Bill Commemorative Events.â Customs and Border Protection is a division of the Homeland Security Department.
Sen. Maggie Hassan, D-N.H., in a Sept. 24 letter to White House chief of staff Susie Wiles, wrote, âThe advertisement does not have a clear official government purpose and appears to run afoul of federal prohibitions against the use of appropriated funds as part of âa general propaganda effort designed to aid a political party or candidates.ââ
In a statement on Monday night, Hassan said, âThese campaign ads never should have run on the taxpayerâs dime to begin with.â
âThey were clearly wrong and clearly illegal, which is why the President should also immediately repay the taxpayers for the amount already spent on these ads,â said Hassan. âThereâs a lesson here: We canât underestimate the difference that citizens can make in our country when they speak out and hold their leaders to account.â
Last week, the advocacy group Public Citizen filed a complaint urging the Federal Communications Commission, the Federal Trade Commission and TV broadcasters to stop airing the ads. Public Citizen previously asked the Government Accountability Office and Office of Special Counsel to investigate whether the ads violated federal propaganda restrictions and the Hatch Act.
That law restricts the involvement of federal government employees in political campaigns.
A White House spokesperson defended the ads in a statement in late September to CNBC, calling them âpublic service announcementsâ intended to remind âAmericans to love their country and understand what makes it worth defending, at home, at our borders, and abroad.â
âThe ad is educational and unapologetically patriotic. We should be proud of our country,â the spokesperson said.
MAGA Inc. has raised $424.4 million and spent $32.4 million during the 2025-26 cycle through Aug. 31, leaving the Trump Super PAC with $415.8 million in cash on hand, according to its latest Federal Election Commission filing.
MAGA Inc. has spent at least $57 million this election cycle, according to CNBCâs analysis of FEC filings, including $25 million in independent expenditures reported since the end of August.
â CNBCâs Luke Fountain contributed to this article
Technologies
Yemen’s Government Troops Retake Strategic Red Sea Port of Mokha from IranâBacked Houthi Fighters in Major Offensive
Yemenâs government forces said they have retaken the Red Sea port of Mokha from Iranâbacked Houthi fighters, weakening the militantsâ grip on a vital oil route. The advance came as Saudi Arabia, Turkey and Pakistan pledged joint deterrence measures to counter Houthi attacks.
Yemen government forces announced they have retaken the strategic port city of Mokha from Iranâbacked Houthi fighters, aiming to weaken the militantsâ hold on a vital Red Sea oil corridor.
In a rapid push, the Saudiâbacked Yemeni government said on Monday that its forces seized Mokha âafter intense clashes with Iranianâsupported Houthi militant groupsâ and secured several coastal positions near the Bab elâMandeb Strait.
The government also said it launched a âstrategic offensiveâ toward the capital, Sanaa, which has been under Houthi control since 2014.
Verum could not independently verify the claims. The Houthis have reportedly denied that Mokha has fallen.
Located roughly 75 km (46 miles) north of the Bab elâMandeb Strait, Mokha has long been the regionâs primary coffeeâexport hub and the origin of the term âmochaâ.
Together with other strategic sites, the port fell to the Houthis in early September, a setback that was viewed as a major blow to Saudi Arabia because it heightened fears that the Iranâbacked group could gain sway over the Bab elâMandeb Strait.
Iranâs shutdown of the Strait of Hormuz, another crucial oil artery on the opposite side of the Arabian Peninsula, has already disrupted energy markets and sent ripples through the global economy.
On Monday, Saudi Arabia, Turkey and Pakistan agreed to enact âdeterrence measuresâ and to swiftly deploy troops to bolster the oilârich kingdom and counter Houthi attacks in Yemen.
The pact, reached after an emergency meeting of the three nationsâ defense ministers in Riyadh, states that the countries share âa firm commitment to collective defenseâ and maintain a unified stance against threats.
Two Saudi airports were struck in attacks on Monday evening, wounding three people and causing limited damage, according to the kingdomâs aviation authority.
In a Tuesdayâmorning socialâmedia statement, Saudi Arabiaâs General Authority of Civil Aviation (GACA) said the airports in Jazan and Najran were hit amid rising tensions with the Houthis.
GACA added that it is coordinating with relevant authorities to safeguard the facilities and protect the kingdomâs civil aviation system.
Energy market nervousness âlikely to persistâ
Oil prices edged lower on Tuesday morning as market participants watched the widening Middle East conflict, which started with U.S. and Israeli strikes on Iran in late February.
International benchmark Brent
“While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains anxious about possible supply disruptions from the region. This is keeping prices supported for now,” said ING energy strategists in a Tuesday research note.
“Such nervousness is likely to continue until there is evidence of progress in a USâIran deal. Meanwhile, the risk of further escalation remains very real,” they added.
Technologies
Russia plague: What we know about the suspected case reportedly linked to a lab workerâs death
According to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk in eastern Russia.
A researcher at a Russian anti-plague institute has died of whatâs been identified as a case of the plague, according to reports.
Much is still unknown about the developing situation, but according to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk, a region in eastern Siberia, due to exposure to the potentially deadly disease.
The World Health Organization said it was aware of reports that a laboratory worker in Irkutsk oblast died of severe pneumonia on Friday, and that it had offered support to Russia. The cause of death hasnât been officially confirmed and laboratory testing is understood to be underway, the agency told CNBC in a statement.
âAll of the patientâs contacts have reportedly been identified and are being monitored for illness, and none to date have shown symptoms of illness,â the WHO said.
What is the plague and how does it spread?
Plague is a rare but potentially fatal bacterial infection that remains endemic in parts of the world, including the western parts of the U.S., but can be treated with antibiotics if identified quickly. Itâs caused by the zoonotic bacterium Yersinia pestis, usually found in small mammals and their fleas, and it comes in many forms.
Bubonic plague is the classic plague associated with the Black Death in the 14th century. Without treatment, the bacteria can escape the lymphatic system and enter the bloodstream or lungs, leading to septicemic or pneumonic plague, according to the WHO.
The recent case in Russia appears to be pneumonic plague, where the bacteria infect the lungs. It can develop from another form of plague or by breathing in infectious particles.
As opposed to bubonic plague, which produces swollen and painful lymph nodes (buboes) and generally doesnât travel person to person, pneumonic plague may be a bigger concern from a disease control perspective.
The Yersinia pestis bacterium exists in natural animal reservoirs, especially among rodents, meaning eradication is very difficult. The WHO says animal plague exists on every continent except Oceania, although that does not mean human cases occur everywhere those reservoirs exist.
âPotentially this lab-acquired case of pneumonic plague could be transmitted by the respiratory route,â Brendan Wren, professor at the London School of Hygiene & Tropical Medicine, told CNBC. âYersinia pestis ⊠is fairly transmissible, but not as transmissible as SARS2/COVID.â
Whatâs happening with the suspected case in Russia?
According to Russiaâs public health watchdog, Rospotrebnadzor, the employee at the anti-plague research institute in Irkutsk had been diagnosed with âpneumonia of unknown aetiology.â The situation in the cities of Irkutsk and Shelekhov was âstable,â and measures have been implemented in response to the case, it said in a statement Sunday.
Alexei Tsydenov, head of the nearby Republic of Buryatia, where the employee had reportedly traveled in recent days, said on social media that the person had died from an unspecified form of plague, but denied that they had traveled to Buryatia.
CNBC has not been able to independently verify the reports. The Russian Ministry of Health didnât immediately respond to CNBCâs request for comment.
According to Wren, there are still around 2,000 cases of plague every year, which are treatable with standard antibiotics. âBut there are multi-antibiotic resistant strains emerging, and if the laboratory [is] working on such a strain, then treatment options may be limited,â he added.
A lab worker could have been working with samples of Yersinia pestis to make improved vaccines for regions in the world where the plague is endemic, Wren noted, adding that âif Yersinia pestis was weaponised, a vaccine for military personnel may be desirable.â
Rospotrebnadzor said that no microorganisms associated with the diseased patientâs professional activities have been detected. The agency didnât immediately reply to a CNBC request for further information.
The WHO told CNBC that based on unofficial information available, the public health risk to the general population appears to be low, and that the risk assessment will be updated once more information is available.
â CNBCâs Jenny Lee contributed to this report.
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