With recent reports predicting that Activision Blizzard would soon conduct sweeping layoffs, it was only a matter of time before the publishing powerhouse began the process. However, while hundreds of Activision and Blizzard employees were learning they no longer had jobs, the company tried to paint the picture of success for 2018.
In a letter obtained by Kotaku, Blizzard president J. Allen Brack informed Activision Blizzard employees that a reduction in staff across the organization would begin today. The news was soon-after confirmed by Activision Blizzard in the Q4 2018 earnings call.
“Currently staffing levels on some teams are out of proportion with our current release slate. This means we need to scale down some areas of our organization. I’m sorry to share that we will be parting ways with some of our colleagues in the U.S. today. In our regional offices, we anticipate similar evaluations, subject to local requirements," the letter reads.
Just after reports surfaced of layoffs at Activision Blizzard, CEO Bobby Kotick hosted an earnings call where he confirmed the company’s plan to reduce the size of its staff. Kotick says the layoffs will directly affect roughly eight percent of Activision Blizzard’s workforce, which translates into nearly 800 employees.
Somewhat ironically, Kotick used that same earnings call to tout the success of Activision Blizzard in 2018. According to several reports, the CEO opened the call by saying, “We once again achieved record results in 2018.
The layoffs are just the next event in a tumultuous 2019 for Activision Blizzard. Following a number of top-level staff changes, the mega-publisher is beginning to see the apparent effects of its split with Bungie. Just after it was revealed that the company would be relinquishing its publishing rights to Bungie’s Destiny, Activision Blizzard saw a substantial drop in stock value.
The Diablo publisher’s woes don’t stop with sales shortcomings and widespread layoffs either. Activision Blizzard is currently under investigation for fraud, initiated by the company’s investors after its decision to split with Bungie. Whether or not the investigation will lead to an active lawsuit isn’t known at the time of this reporting.
No matter one’s opinion on Activision Blizzard, the news that nearly 800 employees in the video-game industry will soon be without work is disheartening, to say the least. Fortunately, companies like Obsidian, DICE, Epic Games and Gearbox are welcoming affected Activision Blizzard employees to peruse their open positions in support.
We here at Game Rant wish only the best to anyone impacted directly or indirectly by the layoffs at Activision Blizzard.
Source: Kotaku
