Activision Blizzard Earnings Call Features Record Sales Year & Mass Layoffs
By TJ Denzer ·
A "record year" of profit for Activision Blizzard isn't enough to keep nearly 800 employees from the mass layoff chopping block.
All things considered, it seems 2018 was a pretty good year for Activision Blizzard. The video game developer/publisher giant oversaw the incredibly successful start of the Overwatch League, one of the best Call of Duty launches with Black Ops 4, and more. Despite this, the rumor that layoffs were coming to the company staff turned out to be true. Activision Blizzard is set to reduce its staff of approximately 9600 by 8% in 2019, or around 800 employees.
Activision Blizzard’s earnings call took place on the evening February 12, 2019. During the call, CEO Bobby Kotick explained that the decrease in staff was necessary as a restructure was in the works that would put further focus on the likes of Overwatch, Call of Duty, Diablo, and esports efforts to name a few. This was immediately after claiming that 2018 was a record fiscal year for the company.
“Currently staffing levels on some teams are out of proportion with our current release slate,” Kotick claimed in a staff note obtained by Kotaku. “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.”
It's safe to say many in the video game industry were more than puzzled by this turn of events.
Call of Duty Black Ops 4....
— Ed Boon (@noobde) February 12, 2019
- great game
- #1 selling console game this year.
- Sold more than Black Ops 3
- "fell short of the company's expectations" pic.twitter.com/WCnbWI41yk
Even so, Activision Blizzard claims to be supplying a “comprehensive severance package” for employees that end up in the layoffs. The gaming community has also stepped forward to attempt to help those who are facing employment termination find a place elsewhere. More than a few developers both big and small have stepped up to offer career opportunities and job openings.
Sad to hear about the #ActivisionBlizzard layoffs. Ubi is always hiring and the job security here is solid. Check out @UbisoftCareers
— Ashraf Ismail (@AshrafAIsmail) February 13, 2019
If you’re open to moving to Montreal, I can answer your questions about Ubi life here. Also I may be looking for storyboard and VFX artists ??♂️
Careers at @EA here.
— Mitch Dyer (@MitchyD) February 12, 2019
- DICE
- Motive
- BioWare
- Respawn
- Capital
- Ghost
- Criterion
- Tiburon
- PopCap
- Firemonkeyhttps://t.co/A3iqcGPnGz
Putting this out there: Epic is hiring for a ton of positions. We are doing awesome things, have great benefits, and Epic takes care of employees and their families. We also have two weeks off in June after E3 because why not. Come join us! https://t.co/350X1XaJiv
— Nick Chester (@nickchester) February 12, 2019
Hopefully many of those affected will find a place among the wide offering in the video game industry. Although the state of Activision Blizzard moving forward with this decision after a good year isn't exactly a glowing glimpse of video game industry employment.
Regardless, one of the major pushes for Activision Blizzard involves a major turn with Call of Duty esports. It would appear that the publisher is looking to bank on Overwatch League’s success and adapt a similar city-franchising model for the Call of Duty World League.