In reading the business section of newspapers (ask your parents), you may notice so many companies recording record profits and implementing massive layoffs. Receiving extra cash from corporate tax cuts has led to more people losing their job. Activision Blizzard is another recent company that is planning to lay off more than 800 employees after recording huge profit.
The news came during an announcement of Activision Blizzard’s Q4 and 2018 earnings, where CEO Bobby Kotick gave the company’s “record results in 2018.” Kotick went on to comment that, “While our financial results for 2018 were the best in our history, we didn’t realize our full potential.”
Activision Blizzard says that it’ll be focusing more on its biggest franchises. Meaning more funds are going to Call of Duty, Candy Crush, Overwatch, Warcraft, Hearthstone, and Diablo. They plan to increase developers across those titles by “approximately 20% over the course of 2019.”
Noticeably missing from that list is Destiny. They parted ways with the publisher in January and is now back in the hands of developer Bungie.
While that is good news for those that love those titles. They need to make up the difference from other departments. Activision Blizzard said that it’ll fund those increases “by de-prioritizing initiatives that are not meeting expectations and reducing certain non-development and administrative-related costs across the business.”
That means that people will be losing their job. That “de-prioritizing initiatives” will result in the nearly 800 laid off employees.
According to Variety, job cuts will be coming from support staff as Activision Blizzard reworks some of its commercial and marketing teams. A Kotaku report elaborates that employees were cut across most of the company, noting that “layoffs have affected Activision, Blizzard, King, and some of Activision’s studios, including High Moon,” although Blizzard itself largely saw cuts only to “non-game-development departments.”