Bloomberg: Activision Blizzard plans mass layoffs.

Even several hundred people can lose their jobs. According to the Bloomberg website, the Activision Blizzard concern will announce plans for mass layoffs this Tuesday. According to well-informed sources of the portal, the reason for such a decision is expected to be sales that are falling and worse than expected financial results. Restructuring is essential to noticeably reduce costs.

According to Bloomberg, Activision may fire even several hundred people from a crew of about 10,000 employees. We learned about this type of option already in November last year. Then the company revealed that the number of players in Overwatch and Hearthstone is starting to drop, and the sale of Forsaken to Destiny 2 was much lower than forecast. Neither the entity nor its shareholders were satisfied with the results.

Activison Blizzards Exchange Chart

Interestingly, in the face of mass layoffs, Activision Blizzard’s appointment of a new finance director. The company dismissed “Stephen Neumann”, who moved to Netflix, the company bet on Dennis Durkin. To persuade him to work, the company gave him a bonus of 15 million dollars (3.75 million in cash and 11.3 million in shares) and fixed a monthly salary of 900 thousand. dollars. As you can see, senior management does not concern savings.

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In the past few years, many veterans of the gaming industry have said goodbye to Activision Blizzard. In January 2018, Eric Hirshberg, CEO of Activision Publishing and Mike Morhaime, one of the founders of Blizzard, left. At the beginning of January this year, the financial director Amrita Ahuja parted with the company, and two days ago, Tim Kilpin announced the resignation of the chair of the CEO of Activision Blizzard Consumer Products. It is clear that the company has problems and a fresh perspective on its development is needed. First, however, you have to cut costs.

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