Activision Blizzard planned massive layoffs
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Bloomberg reports, citing an anonymous source, that Activision Blizzard is planning a global reorganisation. As a result, hundreds of employees will lose their jobs. There were about 9,800 people in the company at the end of 2017.
Activision Blizzard is getting worse and worse lately. Upcoming layoffs may be associated with projects whose return is significantly lower than expected. In early January, Activision ceased collaboration with Bungie, which developed Destiny 2: Forsaken. The game's sales "disappointed the company." Also, Overwatch and Hearthstone continue to lose active users. Activision Blizzard plans to restructure its divisions, but specific measures haven’t been disclosed.
Experts suggest that this will reduce the corporation's annual income by about $400 million. Also, some publisher investors are preparing lawsuits for hiding facts. According to them, the management has hidden the potential existence of leaving Bungie in 2019.
Activision has been successful for many years, mainly due to Blizzard products and the mobile developer King Digital. The units were granted autonomy and creative freedom. However, in recent years, the situation has changed, and some executives and creators have left the company, including Eric Hirschberg, Chris Metzen and Michael Morhaime.
It is expected that the official announcement will be made on Tuesday (February 12).
Not only Activision Blizzard is experiencing intra-collective problems but other large companies, such as Electronic Arts and Take-Two Interactive Software, are also trying to cope with the rapidly changing preferences and desires of players, always faced with declining sales and falling stocks.