Recently, Activision Blizzard has experienced layoffs that have been speculated about for months. Despite strong numbers, nearly 800 employees have to go. The executives say they did not reach their potential in 2018.
This is how many employees were laid off: As Activision Blizzard announces, they have laid off 8% of the staff. This corresponds to about 770 employees.
Why are people being laid off? According to CEO Bobby Kotick, Activision Blizzard achieved “the best results in the company’s history” in 2018 but did not reach its full potential, thus failing to meet its financial expectations.
To achieve this potential, they plan a restructuring. They want to invest “20% more” in the development of core franchises in 2019. In brands like:
- Call of Duty
- Candy Crush
- Overwatch
- Warcraft
- Hearthstone
- Diablo
To be able to invest more money here, Activision Blizzard will now “de-prioritize” other areas. They want to be able to “reach the full potential that the industry currently offers.”
In which areas are people being laid off? The US site Kotaku has learned that it primarily affects employees in the publishing staff of Activision, Blizzard, and King. Additionally, employees at the High Moon studio are rumored to be laid off. They previously worked on Destiny.
According to Kotaku, the head of Blizzard, J. Allen Brack, wrote to employees: In recent years, non-development teams had grown. But this increased level does not correspond to what Blizzard currently releases, therefore they need to reduce positions.
Kotaku further reports that Blizzard has primarily affected the areas “Publishing” and “eSports.” Allegedly, employees cried and embraced each other in the parking lot as they arrived at work today. Although employees suspected there would be layoffs, they did not know if they would be affected.
This is how much money Activision Blizzard made in Q4 2018:
- Revenue in Q4 2018 was $2.38 billion
- In the entire year of 2018, the company made $7.5 billion, (in 2017 it was $7.02 billion)
Here’s what it’s about: The news of the layoffs has been on the horizon for some time. Activision Blizzard apparently is adopting a cost-cutting approach and is reducing in areas that are not directly related to game development.
In recent months, they have discontinued the eSports of Heroes of the Storm.
In addition, they are relinquishing rights to Destiny.
It was already known in advance that layoffs at Activision Blizzard would occur today – but it was not known that there would be so many:
