Ybarra gone is great news. Its sad that 9% of the 22k employees at Activision-Blizzard-King have their roles eliminated because they overlap, but smaller teams tend to be easier to focus during development.
Ideally, anyone in leadership that was put there under Kotick should be investigated and eliminated if needed as well, since nothing Kotick did is trustworthy. And hopefully many of the 1900 employees laid off are.
These layoffs really aren't a sign of anything and wouldn't be something regulators would care about in the first place. Layoffs happen after just about every company merger or acquisition. There will be redundancies, structure changes, budget changes. Some people get their positions shuffled, others just don't have a good fit in the new scheme. Nothing to do with the health of the business or the competition impact on the industry. It definitely sucks for those impacted, and I hope they land on their feet soon.
I am not in a position to judge if this merger will be good for the industry, but this round of layoffs says nothing about that either.
On an individual level it is terrible for the people involved. But on the business level this is a perfectly normal and healthy thing to do and says absolutely nothing about the state of the games industry.