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Rumor: Activision Blizzard to Lay Off Hundreds Next Week - MMORPG.com News

SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
edited February 9 in News & Features Discussion

imageRumor: Activision Blizzard to Lay Off Hundreds Next Week - MMORPG.com News

Tuesday, February 12th is the date for the next Activision Blizzard (ATVI) investor earnings call. According to Bloomberg, the company will also be announcing layoffs due to "slowing sales". The information has come through "people familiar with the matter". The move will be part of a restructuring initiative that may see hundreds of ATVI employees lose their jobs. It's "aimed at centralizing functions and boosting profit" according to the sources.

Read the full story here



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Post edited by SBFord on
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Comments

  • DatastarDatastar Member UncommonPosts: 341
    One word... Mobile
    I am enjoying Star Wars The Old Republic again so at least the blizzpocalypse that was Blizzcon 2018-Current Did something positive glad I gave the game a second chance much more fun to play and socialize in.

    RIP Blizzard fanboy age 16-34
    xxxandrew
  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
    edited February 9
    It's surprising and not surprising at the same time. All game companies are struggling and ATVI's missteps at the end of the year are indicative of this happening, long predicted by @DMKano.

    The Irish customer service workers who took the year's pay and voluntarily left a few months ago are darned lucky.

    I'm so sorry for those who'll lose their jobs. Let's see what Tuesday brings.
    DMKanoMadFrenchieFolmenCazrielDr_BinkswingoodinfomatzSeelinnikoi


    ¯\_(ツ)_/¯ 


  • ScotScot Member LegendaryPosts: 12,184
    I did a joke last time a director left about the last one switching the lights off, that's leaving a sour taste now.

    Outside of their misdirection of WoW I don't see much else of what Activision Blizzard is doing. But it can't be going well obviously.

     25 Agrees

    You received 25 Agrees. You're posting some good content. Great!

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  • FlyByKnightFlyByKnight Member EpicPosts: 3,967
    I have a major announcement for Activision/Blizzard:

    Indeed: Mobile



    "As far as the forum code of conduct, I would think it's a bit outdated and in need of a refre *CLOSED*" 

    ¯\_(ツ)_/¯
  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
    This is so much bigger than Blizzard's turn to mobile with Diablo and unannounced projects. To blame it on a single factor is naive. 
    DMKanoNeonSarujgDuffayTorvalFolmenThaharValentinaLeFantometweedledumb99Celciusand 6 others.


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  • GorweGorwe Member EpicPosts: 6,303
    I feel sorry about people who are losing their jobs. As for Atvi...good, die already, will you? Oh and Bobby and co should be held accountable for major fail. Again, I feel sorry about the people.
    tzervoiamspamicusFolmenThaharGdemamitweedledumb99infomatz
  • DeyirnDeyirn Member UncommonPosts: 464
    On one hand I'm unhappy that people may lose their jobs, but on the other I'm excited that this is happening, because it can serve as a wake up call for everyone else - the continued failure of Blizzard - one of the biggest and most well known developers are finally being destroyed from the inside.
    GorwetzervoDhamon99doomexScotWhiteshade92ThaharGdemamitweedledumb99TacticalZombehand 1 other.

  • SpiiderSpiider Member RarePosts: 778
    When businesspeople make games bad thing happen. Who am I kidding, when businesspeople touch anything it turns to crap and people lose jobs. This is why gaming sucks in the past decade, its all the greedy bankers who discovered it.
    BluelinerdoomexPalebanePanserbjorne39TyranusPrimeThaharThupliGdemamimarcio519Shaihubyand 6 others.

    No fate but what we make, so make me a ham sandwich please.

  • 3dom3dom Member RarePosts: 826
    Should have announced Diablo 4.
    Gdemamiceh430iamspamicusRueTheWhirlTacticalZombeh

    Thank you for your time!

  • peglegpegleg Member UncommonPosts: 208
    Seems like Blizzard is turning into a Sears of video games.

    All MMO's have grinds. If you don't like to Grind then MMO's are not for you.

  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
    People, this is ACTIVISION Blizzard. If there are layoffs and financial failure, it's both companies, not just one. After all, losing Bungie hurt Activision as did the relative failure of Destiny 2. 
    DMKanoScotBlueThunderBearrojoArcueidwingoodinfomatz


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  • WizardryWizardry Member LegendaryPosts: 16,599
    Spiider said:
    When businesspeople make games bad thing happen. Who am I kidding, when businesspeople touch anything it turns to crap and people lose jobs. This is why gaming sucks in the past decade, its all the greedy bankers who discovered it.
    I have seen this to be so true so often it's not funny.Even in my job,when my boss comes around he is so much about money and speed,he has cost himself several millions over the years.

    Business people,the execs,board they only have one thing on their mind...MONEY.The top employees,the boss of each department only care about one thing...BONUSES,this is the same everywhere,even at Wallmart.

    They are the ones that force games out too early.The biggest perpetrator's ,the publisher's who have all the control to just say no this looks unpolished,too early or just not good enough but they are the ones often wanting it out sooner than later and the ones demanding crap like loot boxes.

    I often point at Hearthstone because it makes Blizzard a lot of money and a game i was there from testing right through to present.When it first came out,i had several concerns and like others who told me i was on the same boat,"it's a new game give it time".
    Well over the years,season after season,Blizzard didn't do a single thing to their game,they just kept selling card packs and their best effort was finding new ways to sell those card packs.


    TyranusPrimeAgeni

    Never forget 3 mile Island and never trust a government official or company spokesman.

  • CoolitCoolit Member UncommonPosts: 658
    Its always a shame that hard working staff have to pay for poor management and planning decisions taken by the higher ups. In this case with key higher ups even leaving you have to wonder just how bad Tuesday will be.

    At this point blizzard have to be crossing their fingers that Classic will bring back the subs and if not then I can see them being in real trouble. I just wonder at what point they will take WoW F2P.
    Gdemami
  • MisterZebubMisterZebub Member LegendaryPosts: 3,584
    Coolit said:
    Its always a shame that hard working staff have to pay for poor management and planning decisions taken by the higher ups. In this case with key higher ups even leaving you have to wonder just how bad Tuesday will be.

    At this point blizzard have to be crossing their fingers that Classic will bring back the subs and if not then I can see them being in real trouble. I just wonder at what point they will take WoW F2P.
    I'm honestly expecting the announcement that Classic Wow has been canceled the way things have been going.
    some-clueless-guyPalebanewingoodTacticalZombehinfomatz

    "You have kept me at your beck and call for fifteen years. I shall never again do what you demand of me. By every rule of single combat, from this moment your life belongs to me. Is that not correct? Then I shall simply declare you dead. In all of your dealings with me, you'll do me the courtesy to conduct yourself as a dead man. I have submitted to your notions of honor long enough. You will now submit to mine."

  • GaladournGaladourn Member RarePosts: 1,802
    Are you kidding? Classic is their last chance to turn the game...
    PalebaneGdemami
  • NyteWytchNyteWytch Member UncommonPosts: 45
    SBFord said:
    People, this is ACTIVISION Blizzard. If there are layoffs and financial failure, it's both companies, not just one. After all, losing Bungie hurt Activision as did the relative failure of Destiny 2. 
    I still call bullshit on this from Activision. Back in Sept the articles were all patting D2 on the back for top grossing on consoles and 60% of D2 owners buying the expansion. Then later Activision states they were upset with D2 sales. Wat.  :/  Sounds like spin since the jettison of Bungie was probably already in the works by then.

    sources:
    https://www.pcgamesinsider.biz/news/67786/destiny-2s-forsaken-expansion-allegedly-tripled-the-games-player-count/

    https://www.dualshockers.com/destiny-2-spider-man-digital-sales-september-2018/


    Sad to see more people losing jobs and hopefully they find prosperous new positions. <3
    gervaise1infomatz
  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses. Couldn't that have better been spent to keep the folks in the trenches employed instead of lining already rich people's pockets?

    Oh wait....that's big business, isn't it? :/
    BakgrindCoolitgervaise1klash2defparrotpholkTintagilWhiteshade92samooryesordPalebaneStrizzy12and 14 others.


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  • petersnowzpetersnowz Member UncommonPosts: 8

    Spiider said:

    When businesspeople make games bad thing happen. Who am I kidding, when businesspeople touch anything it turns to crap and people lose jobs. This is why gaming sucks in the past decade, its all the greedy bankers who discovered it.



    ur right crowfunding is much better.................................................................
    ShadowStyleBCryomatrixwingood

    image
  • MyriaMyria Member UncommonPosts: 699
    SBFord said:
    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses.

    Most of that was in future stock if certain targets were met, wasn't it? Even assuming said targets are met, I have my doubts the stock will quite so big a windfall, and if targets are met one could argue that, at least as far as Acti-Blizz is concerned, it's money well earned.

    The whole CFO mess makes for great headlines because to the average person it "feels" wrong, but I doubt that in the real world it's at all relevant to the current situation.

    Put another way, correlation, despite The Interent's general insistence to the contrary, does not equal causation and while Bad Optics may make for great headlines and lots of clicks, it's rarely nearly as explanatory as people so desperately want to believe.
    bigmilkThupliGdemamiwingoodNycteliosKyleran
  • Skaar.AionSkaar.Aion Member UncommonPosts: 9

    SBFord said:

    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses. Couldn't that have better been spent to keep the folks in the trenches employed instead of lining already rich people's pockets?

    Oh wait....that's big business, isn't it? :/



    Important to keep in mind that those 15 Million aren't cash-money though.
    Bonuses like that are almost always stock/shares and are tied to certain criteria to entice the new officer to do a good job.

    It's still shitty though, that the people responsible will most likely come out of this unscathed...
    Instead of reducing management/officer salaries by 10% across the board and show responsibility that way - which would have saved a LOT of jobs - it's the lower level employees that will suffer the consequences brought by the management...
    PalebaneThupliSolancerinfomatz
  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126

    SBFord said:

    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses. Couldn't that have better been spent to keep the folks in the trenches employed instead of lining already rich people's pockets?

    Oh wait....that's big business, isn't it? :/
    Important to keep in mind that those 15 Million aren't cash-money though.
    Bonuses like that are almost always stock/shares and are tied to certain criteria to entice the new officer to do a good job.

    It's still shitty though, that the people responsible will most likely come out of this unscathed...
    Instead of reducing management/officer salaries by 10% across the board and show responsibility that way - which would have saved a LOT of jobs - it's the lower level employees that will suffer the consequences brought by the management...
    I understand that but his base salary is in multi millions plus bonuses. It's disgusting.
    Skaar.Aiongervaise1ValentinaThupliGdemamiTuor7wingood


    ¯\_(ツ)_/¯ 


  • blueturtle13blueturtle13 Member LegendaryPosts: 11,869
    Blizzard should have remained an Indie studio
    SBFordklash2defTintagilMadFrenchiePanserbjorne39TyranusPrimeThaharrojoArcueidexile01marcio519and 6 others.

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  • gervaise1gervaise1 Member EpicPosts: 6,448
    SBFord said:
    People, this is ACTIVISION Blizzard. If there are layoffs and financial failure, it's both companies, not just one. After all, losing Bungie hurt Activision as did the relative failure of Destiny 2. 
    3 "companies", the third being King. (Technically e-sports is a 4th but ....). And when one suffers they all suffer.

    Activision the "smallest leg" of the 3-legged stool. Their revenue mix a lot like EA and UbiSoft; big chunk of console. Based on EA's results: "good but not stellar" would apply. And when it comes to Destiny 2 they are simply funding the game and then selling it - with a 30% markup or whatever. 

    I wonder whether AB wanted to renegotiate the deal with Bungee? Have Bungee to take on more of more of the up-front funding. That would make sense if cash flow within the company as a whole has become "constrained". So adios Bungee. Basically a studio closure. And before Bungee it was Infinity Ward. Not a loss of "core Activision" to get rid of.

    When the forum discussed AB's last results though its the other two legs that "we" suggested had the real problem. WoW subs, King's declining numbers etc. Problems here would mean a decline in cash flow not tied to game release milestones. If there are cuts then here especially - and the e-sports bit on the side.




  • DerrosDerros Member UncommonPosts: 1,216
    I remember some people saying that Morhaime was a big enough figure that he was able to protect Blizzard proper from Activision while he was there. Now that he's not, gloves are off I guess. Not surprising.
    SBFordwingoodNycteliosinfomatz
  • AeanderAeander Member LegendaryPosts: 4,942
    Not surprising at all. Activision has been left with nothing of note other than Call of Duty and Blizzard just sits on most of their IPs doing fuck all with them.
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