Activision Blizzard has notified hundreds of employees that their services will no longer be required today. The cull is rumoured to affect around eight per cent of the organisation’s enormous 9,600 workforce, so will render hundreds of staffers redundant. The cuts span the entire organisation, including Activision, Blizzard, and mobile developer King.
Speaking at a conference call, CEO Bobby Kotick announced that his company had achieved “record” results in 2018, but that it was consolidating and restructuring after failing to meet its expectations and lowering its forecast for the coming year. According to Kotaku, the layoffs seem to be focused on non-game development departments, such as Blizzard’s eSports team, for example.
While it will be little consolation for those out of work, the publisher does appear to be doing right by its employees, promising a “comprehensive severance package”, continued health benefits, career coaching, and more. Naturally, our thoughts go out to all those affected – we hope everyone bounces back quickly in awesome new roles.
[source kotaku.com]
Comments 41
Expect EA and Activision to double on pre existing IPs as "live services" for the forseeable future. The success of Apex Legends will probably be the blueprint going forward.
Gotta reach those record profits next year as well!
Theres a contradiction between record result and 'failing to meet expectation'? I dont get it.
@JJ2 8 billion isn't 10 billion
Translation - we need to fire people now to have more money for stock buybacks and paying more in dividends to our shareholders.
https://www.streetinsider.com/Dividend+Hike/Activision+Blizzard+%28ATVI%29+Raises+Annual+Dividend+8.8%25+to+%240.37%3B+%241.5B+Buyback/15116958.html
Edit: Sorry, last link was paywalled, this one is the full article with the numbers at the end.
"The company also revealed that it is increasing its dividend by 9%, to 37 cents a share, and that the board approved a two-year, $1.5 billion stock-repurchase plan."
https://www.marketwatch.com/story/activision-blizzard-earnings-and-forecast-come-up-short-of-expectations-amid-layoffs-2019-02-12
One point five billion with a B dollars. How many employee salaries would that cover? 1,500 employees, if they were getting paid $1 mil per year.
I hope Overwatch’s amazing support is unaffected. I’m actually a really big fan of the meta at the moment. I main Brigitte and Mei and honestly, when that Brigitte nerf hit, I accepted it as it was deserved. She’s still fun to play.
@nessisonett I sold Overwatch and i dont buy anything made by Activision Blizzard anymore. The worst company ever way worse then EA.
It always sucks when you hear about stories like this. I hope that all of those affected find work soon.
Well this isn't really a surprise. Blizzard said that they were downsizing the Hero of the Storm team as well as cancelling the esport tied to it as well a few months ago.
Just let blizzard be blizzard and make d4
In the words of Jim Sterling "They want not some of the money, they want all the moneyyyy!"
As quoted before https://www.pushsquare.com/news/2017/11/poll_what_are_your_thoughts_on_call_of_duty_as_a_whole
I do not like Activision never have never will.
http://www.digitallydownloaded.net/2019/02/stop-buying-activision-blizzard-games.html
My thoughts match pretty much. I downloaded Apex Legends the other day, haven't played it yet, and will be deleting it the next time I power on my PS4.
Time for gamers to stop supporting cancer.
Activision Blizzard
@WCB That game is from EA. 😁
@Flaming_Kaiser I know. I don't have an Activision game to delete. 😀 Plus I feel the same about EA.
@WCB 👍 For me the only crime with BFV is that they should have released it later with everything finished. 😁
It was way to barebone with the release the free stuff was good. 😃
Makes me feel a bit dirty giving them money for Crash and Spyro. Only games I’ve given them money for in a looooooong time.
Activision is cancer. This lay-off does nothing but show Activision as greedy and uncaring of the fans.
Blizzard on the other hand are one of my favourite game makers. But they are being ruined by Activision.
I hope they do a Bungie and split.
@WCB I agree with the sentiments. However, I feel for the developer of Apex Legends. They are putting out a good game, but EA is profiting. And I have no doubts EA put them under emence pressure to recover the losses of Titanfall 2.
I really feel like big, greedy publishers are hurting this industry and the game developers are stuck under their control with no way out.
@Tasuki the question is why did they have to? Old Blizzard would have kept it going even if it wasn’t making millions, because they cared more about the fans back then.
Activision is laying off people after record profits. And on top of that getting rid of programmes that connected them with the fans and that fans loved.
I play both Overwatch and Heroes of the Storm. And watch Overwatch League. This feels like a slap in the face.
Now will people finally stop defending these companies and their need to put microtransactions in everything as games are too expensive to make? It's nonsense, always has been and always will be.
It doesn't matter how much money these companies make as they always want more. More for shareholders, more for themselves and if they don't get it they are literally taking it out of the pockets of those that they employ whilst the people who make these decisions continue to swim in a pile of money like Scrooge McDuck.
Remember when Nintendo genuinely a bad year and Iwata took responsibility and a pay cut himself to safeguard his employees, this mob have a phenomenal year and sack nearly 10% of their workforce because in their view not enough people bought their games and they wanted some more money.
Sorry CTR as I for one will definitely not be buying any more of their games
There's something wrong in this industry when the company is doing really well but lay offs hundreds of its workers
@carlos82 Welcome to world of shareholders and overpaid CEOs. The bubble is going to burst at some point, but while they're not there all they care about is making more money each subsequent year. Anyone can see why this doesn't work out in the long run, but in the meantime they'll do anything to increase next year's profits. And the shareholders? They invest purely on basis of making a profit, and therefore the company needs to grow as well, so it's a big downwards spiral that doesn't end anywhere. And it all results in shady business practices, massive lay-offs, tax evasion, less risks when it comes to making products, and less products overall; they rather have 3 guaranteed cash cows than a bunch of cool games that may not sell 10 million copies. And remember, this company is supposed to make video games...
Terrible news. I hope everyone lands on their feet.
I hate to see people laid off, but is it karma for ruining the Tony Hawk's franchise?
@Tasuki
-Works at a site that deletes comments that contain "bad words" because it's for all ages, yet there's a top Sony exec giving the middle finger on front page
-Posts troll comments on sister site NL
-Deletes broad comment about jobs industry and common sense, says "be more sensitive"
Thank you, I really needed a good laugh today!
Microsoft could have hired up tons of workers to create a new studio for free, too bad they already forked out.
Utter scum. Just so the higher ups and investors can keep swimming in piles of cash.
This disgusts me in that the issue isn't that they are producing successful titles or making money but rather that they are constantly promising continued growth which is EXACTLY how bubbles are created and crashes then occur.
The rise of revenue from major publishers has been fuelled by digital transactions, such as micro transactions, dlc, season passes etc. Of course, they did this in spades without considering this isn't a bottomless well. Not every game will be successful, not every game will lead to constant spending and monetization because the market will be saturated.
I hate to go all Jim Sterling but this is capitalism at its worse. I am fine with businesses making profit and being succesful, I think it is great. I just hate irresponsible corporate behaviour where peoples futures are gambled away on shaky predictions to please a small set of financiers who will abandon it the moment they don't see the promised profits.
I also have no problem with the restructure if businesses are failing because that is a sad reality. It is just greed and mismanagement.
@tomassi why Neversoft joined them still mistifies me.
Kinda odd that, if Overwatch is such a big game, then why did Activision fire Blizz's own e-sports team?
@Number09 So depressing isn't it. I pray we will get another THPS game one day. As much as Skate etc is OK, I like the non-serious goofiness and missions of the THPS games, specifically number 3 which holds really special memories for me.
I don't want to say too much about Activision and the recent news of all those layoffs despite a 'record breaking' year - you can watch Jim Sterlings video on that which echoes a LOT of my opinion too.
That being said, I do think that if Activision actually made new 'games', developed 'new' franchises, they wouldn't be in this position. Its no wonder they are pessimistic about the upcoming year as they have lost Bungie/Destiny, relying on the success of CoD and micro-transaction as well as remakes of old games to keep maintaining the 'growth' (of 'profit') they have seen in the past few years.
What people are failing to see with all this, the amount that say the 'rising cost of developments is the reason for micro-transactions, games reducing in content to be sold back later etc' - the actual reason for this is to maintain 'profit' growth year on year - instead of making a 10's of million $'s every quarter, they started to make 100's of millions every quarter with the micro-transactions and so the share-holders and CEO's started to expect that 'every' quarter. They also realised that games cost money to develop but micro-transactions are basically free to make so they reduced the number of games they make and increased the micro-transactions to not only maintain, but increase their quarterly profit margins.
They 'forecast' growth and 'profit' and so if a game doesn't sell the amount they expect, which also has a knock on to our many micro-transactions and DLC they expect to sell, they are 'disappointed' despite the fact these games still made 10's (if not 100's) of millions profit - it just wasn't enough profit to exceed last their 'expected' profit.
Its such a shame that 'profit growth' which is unsustainable, dictates the decisions of these publishers. Profit will eventually plateau - especially if you are not making new 'games' to tempt more people in. If you are just relying on the annual CoD and Destiny (or Fifa and whatever FPS its time for with EA) to increase your profit margins with not only the sale of the game but all the digital extras, then it will plateau and even drop off when the people buying these get fed up with the 'bad' practices.
Its no wonder Activision are facing a 'tough' (as in unlikely to increase or even match their profit after a 'record breaking' profit) because they have lost Bungie/Destiny, relying on CoD which, according to Activision, are not selling the games in the same quantity year on year - which no doubt means fewer and fewer 'additional' purchases and relying on sales of 'old' games that cannot easily be monetised with additional digital content. They can't suddenly develop a AAA game to replace Destiny so they can replace that 'loss' by dropping anyone who wasn't directly involved in the development of games to save that expense - although they will probably end up costing more in severance pay - but that's a 'one off' payment which will reflect in their 'profit margin' this quarter and then next quarter, they will see a 'growth' again....
It seems obvious to me that to 'get' money, you have to make something people want. They will buy and so you get your investment back and see a profit. Taking the 'easy' way with micro-transactions and the 'terrible way' by making people 'gamble' for what they want instead of the 'hard' way by making games people want as left Activision in this position. Putting all their eggs in one or two baskets means that if one of those baskets is dropped, loses a lot of its audience, you have little left to fill that void.
Slam UbiSoft all you want with annual releases of AC or FC but they are also responsible for numerous other new games like the Division, Watch Dogs, Skull N Bones, the Crew, Ghost Recon Wildlands, For Honor, Just Dance etc as well as smaller games like Trials, Valiant Hearts, Grow Up, the 3 AC chronicles etc. Point is, they are making New games too, not relying on just 1 or 2 with digital content to boost profit margins.
In reality, the reason Activision is in this position is because of their ridiculous Profit Growth over the past 5-8yrs despite releasing fewer and fewer games. Its that unsustainable profit growth that has led to this situation - that and losing one of their biggest cash cows - Destiny!
@RedMageLanakyn First off I have no control on the pictures, if you find offense to that you will have to take it up with @get2sammyb or @ShogunRok.
Second ok if you want to call my posts troll posts because you don't like what I say just like everyone else who throws the troll word around sure
Third good I am glad I made your day!!!! 😘
Anymore suggestions feel free to use the contact form.
I really can see a games crash again like the 1980s I really can and it will be the people at the top who are to blame
@Tasuki Nah I don't have any suggestions, they would fall on deaf ears, and I also am aware that you don't control the content. I just find the whole situation.....ironic at best, hypocritical at worst.
@wiiware there can never be enough money to satisfy corporate slime and their out of touch shareholders.
Capitalism 'working' as intended.
The final outcome of this sick ideology is one impossibly fat man sitting on top of ALL the money in the world, looking gleefully out over a sea of emaciated humanity writhing in their own filth.
Fcuk you Activision.
We have a world credit crisis a few years back the world gets back to a decent state and now CEO and shareholders want to make sure that they have money stored away in offshore bank accounts or dodge tax payments like Activison does because there's is based in Holland. And the hard works who get them that money but not what they want get chopped I hope Activison burn I really do
@rjejr You know this business is the big to hold. It just like the banks it will crash and burn and all the rich people will get their bonus. Ofcourse the company goes down and every normal Joe will be 🤬ed
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