Activision Blizzard announce an 8% reduction in staff.
Activision Blizzard have announced job cuts as part of restructuring plans for the company after disappointing sales forecast for 2019.
News began to come out last week when Bloomberg reported of these potential cuts that could impact hundreds of members of staff. Activision Blizzard had approximately 9800 members of staff at the end of 2017.
During this week’s Activision earnings call the numbers were confirmed and approximately 8% of staff will be losing their jobs – this equates to 800 people.
The earnings call started with Activision Blizzard CEO Bobby Kotick telling investors the company had “once again achieved record results in 2018″. However the company would be restructuring due to disappointing sales against expectations in 2018 and a reduction of 2019 targets.
One area specifically called out on the earnings call was the under performance of in-game purchases. This is a popular revenue generator for games like Fortnite and other ‘live service’ games.
Kotaku obtained a letter from inside Blizzard and it says.
“Over the last few years, many of our non-development teams expanded to support various needs. 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.”J. Allen Brack, Blizzard President
The job cuts appear to be mainly in the non-game development departments at Blizzard e.g. Publishing and e-sports. Activision did announce they will increase the number of developers working on its most popular games by 20 percent.
This is very sad news for all those concerned and our best wishes go out to those who have been affected.