Activision Blizzard to Cut Hundreds of Jobs Following Stock Plummet

Joanna Estrada
February 11, 2019

2018 was a tough year for the gaming industry, and it doesn't look like the downward trend is going to let up anytime soon.

Bloomberg are reporting that Activision Blizzard are to lay off hundreds of staff, formally announcing the move this Tuesday.

Sources say that this restructuring will strike other parts of the company including their subsidiary, Blizzard, as well.

According to Bloomberg, the layoffs are part of a restructuring to centralise functions and boost profit - following their November conference call previous year where they stated how major titles, like Overwatch and Hearthstone, were seeing declining numbers.

Coincidentally, the layoffs seem to come just a month after it was announced that the developer of the Destiny franchise, Bungie announced that it was ending its partnership with Activision Blizzard.

Kotaku's Jason Schreier has also reported that these layoffs are expected to be "primarily in non-game-development departments, such as publishing, marketing, and sales". It's very likely that the positions being targeted are staff who were originally brought on to work on the Destiny 2 IP.

Among the traditional giant publishers, Activision Blizzard is not alone in its woes: The Bloomberg report notes that Electronic Arts' share price fell by 13 percent earlier this week following a report of disappointing sales, and Take-Two Interactive also tumbled after forecasting sales for the quarter that were below analyst forecasts. That sounds like the job losses will be in administration roles rather than in development teams which is probably for the best as apart from the odd Spyro or Crash game Activision relies exclusively on Overwatch and Call of Duty, and Blizzard on Warcraft.

Metro GameCentral has reached out to Activision and Blizzard for comment. Under the Blizzard Entertainment umbrella, the company still rakes in millions from its World of Warcraft MMORPG.

Other reports by Click Lancashire

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