Activision Blizzard Cuts 8% of Jobs Amid 'Record Results In 2018' (kotaku.com)

On an earnings call this afternoon, publisher Activision Blizzard said that it would be eliminating 8% of its staff. "In 2018, Activision Blizzard had roughly 9,600 employees, which would mean nearly 800 people are now out of work," reports Kotaku. "This afternoon, the mega-publisher began notifying those who are being laid off across its various organizations, which include Activision, Blizzard, and King." From the report: On the earnings call, Activision Blizzard CEO Bobby Kotick told investors that the company had "once again achieved record results in 2018" but that the company would be consolidating and restructuring because of missed expectations for 2018 and lowered expectations for 2019. The company said it would be cutting mainly non-game-development departments and bolstering its development staff for franchises like Call of Duty and Diablo. Development sources from across the industry told Kotaku this afternoon that the layoffs have affected Activision publishing, Blizzard, King, and some of Activision's studios, including High Moon. At Blizzard, the layoffs appear to only have affected non-game-development departments, such as publishing and esports, both of which were expected to be hit hard. "Over the last few years, many of our non-development teams expanded to support various needs," Blizzard president J. Allen Brack said in a note to staff. "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."

Thankfully, the letter promised "a comprehensive severance package," continued health benefits, career coaching, and job placement assistance as well as profit-sharing bonuses for the previous year to those who are being laid off at Blizzard. "There's no way to make this transition easy for impacted employees, but we are doing what we can to support our colleagues," Brack wrote.

Comments

It's been a record year for blunders

[WolfgangVL]

The video-game industry spent 2018 shooting itself in the foot. Waiting for Bethesda and EA to follow suit.

"missed expectations for 2018 and lowered expectations for 2019" == The microtransactions and loot-boxes are not working out. We need to start actually making games with realistic budgets and profit expectations.

Re:It's been a record year for blunders

[apoc.famine]

It's not just a realistic budget and profit expectation that's needed - what's needed is some risk. They almost all play it safe, and just iterate the same-old-same-old now with better graphics.

Trust that you've got good people, (that is, if you haven't laid them all off) and let them try something new. A lot of the tries will be flops, but if you can find that big new thing, you're going to make bank. No, it's not a sure thing. But FFS, you're just laying people off left and right anyway. Might as well take a risk to have a break-out hit in the process.

If I was in the business, I think I'd rather try something crazy innovative and get laid off when it didn't work out than grind out another clone of a decade old game only to get laid off anyway.

And if you're just trying to milk your stock incentives, you've got enough name recognition and money to risk having to take your golden parachute and go cry on your yacht for 6 months before getting hired somewhere else. Take a risk and shoot for a giant payout! I mean, if you're the C* of a major gaming company, you absolutely do not have anything to lose. At least nothing that you're going to miss.

i would ask, but

[Texmaize]

You understand China uses tariffs to wonderful effect don't you? I suspect you don't since you are repeating lines that others have fed you.

and an 8% increase in it's dividend, coincidence?

[rjejr]

Besides announcing the the 8% increase in their stock dividend they also announced a $1.5B, that's billion with a B, stock buyback. That's enough money to pay 1,500 employees, if those employees made $1 million per year. Sickening.

Re:What about the dividends?

[kenh]

The "little people" are the 800 or so people being let go as "redundant" to the company needs, and are getting a period of free healthcare coverage, a generous severance package, and their profit-sharing bonus from last year.

Short of keeping the employees in no-show jobs, they are doing the right thing by "the little people" IMHO.