Activision Blizzard announces massive layoffs
The company is preparing to cut “hundreds” of jobs
Activision Blizzard is having a difficult time keeping up with competitors such as Take-Two Interactive and Electronic Arts and weaker sales are beginning to take their toll. The company has announced that it will be cutting its staff, stating that the layoffs could reach into “the hundreds.”
The news came just a few days after the company reported its earnings results, which revealed that the video market industry has lost some of its shine. Last week, ahead of the announcement, Activision’s stock dropped 10% and the company is now scrambling to cut costs wherever it can.
It’s a surprise move from the publisher of monster video game franchises such as Warcraft, Call of Duty and Diablo. The exact details of its restructuring plan, including layoffs and other changes, are expected to be revealed tomorrow.
Last month, the company’s stock price dropped 7% when it announced that it was splitting from the Bungie game studio. That previous marriage brought the Destiny game franchise, but, when things went downhill, Activision was forced to make a number of changes.
In the past four months, Activision’s stock has fallen about 48%. It reached a 52-week high of $84.68 last October and has now dropped below $43.41.
The video game market has become tougher in recent years. The industry has gained in popularity, but there are a lot of battles that make maintaining a lead more difficult. Just last week, it was reported announced that large video game retailer GameSpot would most likely be forced to shut down permanently in the near future.