Here’s a story that you hate to write. It looks like massive layoffs are planned for Activision Blizzard this week. An unidentified source told Bloomberg that it could be hundreds of people out of work. The decision appears to have been made, because sales have started to die down for once popular games like Overwatch and Call of Duty. Destiny 2: Forsaken sales were also disappointing, and Bungie has left the publisher. That move could cost Activision Blizzard up to $400 million in potential revenue for 2019.
The company has already seen a few of its top people heading for the door. The CEO of Activision, Eric Hirshberg, and the CEO of Blizzard, Mike Morhaime, have both left the company in the last year. The CFO, Spencer Neumann, left for Netflix, and consumer-products head, Tom Kilpin retired.
Beyond lower sales, the layoffs are part of a restructuring effort. It’s hoped that making changes in this way should allow the company to save money and make more in the future. Maybe that will prevent a future bankruptcy that would only put more people out of work. Speculation aside, the overall share price went down on Friday, based on a projection of 2% drop in sales over the year.
This news is still rumor for now, but there’s a lot of smoke for there to be no fire. There is an investor call on Tuesday at 4:30 p.m. EST to discuss the 4th quarter financials, so we should receive some solid information then. No matter what happens, we hope any employees caught in a layoff find new work soon.
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Jason became terminally addicted to videogames after receiving the NES at an early age. This addiction grew to include PC gaming and was cemented with the launch of the PS2. From then on, he was afflicted with epic RPGs, tense shooters, and deep strategy games, never becoming skillful, but never able to quit. He continues to play games (poorly) and share his passion for them to anyone willing to listen.