Report: Activision Blizzard Layoffs “in the Hundreds” Are Expected in the Near Future
In light of some of its recent titles underperforming, reports detail that layoffs may be hitting Activision Blizzard in the near future.
As one of the largest video game publishers around, Activision Blizzard has long been one of the biggest forces behind some of the world’s top-selling games, though recent reports suggest that some restructuring appears to be in the pipeline for the company in the near future, which could result in the loss of numerous jobs from within.
In a report from Bloomberg, the outlet detailed that Activision Blizzard appears to be getting ready to announce layoffs at the company in the coming week (apparently as soon as this coming Tuesday), seemingly as part of plans to restructure the company following the underwhelming performance of some of its recent titles.
According to Bloomberg, the company’s layoffs “could number in the hundreds” as part of the plan, with Activision Blizzard having employed over 9,800 people as of the end of 2017. Overall, Activision’s stock values have also experienced a drop in the past few weeks, with shares reported at a price of $42.88.
This restructuring of Activision Blizzard appears to come as a result of the company’s struggles with some of its recent titles, as Bloomberg reports that titles such as Overwatch and Hearthstone saw “flat or declining numbers of users.” Likewise, Destiny 2: Forsaken appeared to have “disappointing sales” from when it debuted last fall, which likely could have contributed to the recent split between Activision and Destiny developer Bungie last month.
While Activision Blizzard itself hasn’t confirmed the plans just yet, the report coming from Bloomberg at least seems to make sense given some of the notable developments from the company in the past few months. This includes the recent departure of former CFO Spencer Neumann, who now has moved over into a role at Netflix, and of course the decision to split its partnership with Bungie in the development and publishing of the Destiny franchise.
With layoffs, downsizing, and studio closures all too common in the video game industry, the news of Activision Blizzard on the horizon to experience this sort of restructuring isn’t too surprising. However, that makes it no less unfortunate for those that could potentially be impacted as a result of any potential layoffs, especially with the magnitude of layoffs that are expected from the report.