A storm’s brewing.
Something wicked this way comes to the house that created Call of Duty and all them Blizzard games.
Activision Blizzard is planning to lay off hundreds of workers as the company outlines to reform and centralise its operations. According to Bloomberg, the layoff will come from various parts of the company, including Blizzard itself, due to the disappointing number of sales. Activision employed 9,800 people at the end of 2017.
The layoffs, which could affect hundreds, are part of the company’s plan to restructure aimed at centralising and bolstering profits, said one of the people who asked not to be identified as the changes haven’t been announced.
So What Happened?
A lot, actually. Let’s break it down:
- Activision Blizzard lost several high-profile executives: long-time Activision Publishing CEO Eric Hirshberg, Blizzard co-founder and president Mike Morhaime, Activision Blizzard CFO Spencer Neumann, and Blizzard CFO Amirta Ahuja.
- During a conference call in November, Activision Blizzard revealed that some key titles such as Overwatch and Hearthstone were plateauing or declining in numbers of sales and players.
- Activision Blizzard parted ways with Bungie after the appaling sales of Destiny 2: Forsaken, a move that could reduce annual revenues by as much as $400 million USD (RM1.6 billion).
Bloomberg also reports that Activision Blizzard is not the only publisher facing declines in stock -its stock dropped nearly 2.5 percent as of this writing. EA is facing a share price decline of 13 percent earlier this week following bad sales and Take-Two Interactive also tumbled after forecasting sales for the quarter that were below analyst forecasts.
Activision Blizzard’s official announcement is expected to come on Tuesday.