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Article: Activision Blizzard Lay Off Hundreds

Started By:
Three of Seven, Wed 13 Feb, 2019 5:20 PM
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    #1
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    #2
    Saw a YouTube vid on this subject. I really hope well for the employees Sad
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    #3
    I saw a few videos floating around about this topic, while it is sad to hear that nearly 800 people have lost jobs, I'm glad that Activision is helping them get new jobs as quickly as possible.
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    #4
    Grim business. It's all well and good to want to focus on development, but who's left to support those developers?

    Noram
    "There's a point where we needed to stop and we have clearly passed it. But let's keep going and see what happens..."
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    #5
    Good article. I am really sad to see them go, especially Caden as he was a great Community Manager for World of Warcraft (NA)
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    #6
    Just so heartbroken to many friends here in Austin who now no longer work for Blizzard. This was their Career choice. Their dream job. Hell even I dreamed of working for Blizzard.
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    #7
    So let me get this right, Bobby Kotyk got 20 something million in paychecks last year but laying off 800 people is the way to generate more revenue for them? I'd start with slashing his pay as he's clearly not imaginative enough to see other solutions.
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    #8
    So let me get this right, Bobby Kotyk got 20 something million in paychecks last year but laying off 800 people is the way to generate more revenue for them? I'd start with slashing his pay as he's clearly not imaginative enough to see other solutions.
    Keep in mind, they are recruiting for those very same positions again as per their recruitment page.

    We were discussing this on teamspeak yesterday, and the only reason I can think of is that they’re saving the costs with appraisal that comes with keeping a seasoned employee hired. Now they are gonna get people fresh off the boat ( who have no idea about their respective gaming communities ) on way cheaper salaries.

    I mean, that’s exactly the USP of these jobs, a dream career. Heck, even after I’d consider leaving my current job for a career in the gaming industry.
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    #9
     –  Last edited by Adz; Fri 15 Feb, 2019 5:24 AM.
    So let me get this right, Bobby Kotyk got 20 something million in paychecks last year but laying off 800 people is the way to generate more revenue for them? I'd start with slashing his pay as he's clearly not imaginative enough to see other solutions.
    $30,000,000 actually.

    One of the more neo-liberal responses to this I've seen is, "To put it in "Gaming Terms", you can be the world's best DPS but if the party needs a healer instead, you're out[!]"

    As for Mr BK. Share prices have dropped, significantly since last September. Mr BK supposedly received 40% of the stock buyback from Vivendi. if true Mr BK has 'lost' a lot of 'money' over the last few months. If the amount of buyback is not true then he still has a shareholder revolt as is evidenced in their actual share price. Like anything in business it's not, "What have you done for me?" But rather, "What have you done for me lately and what will you do for me tomorrow?"

    Old CFO came back in early Jan 2019, the one who saw the huge boost to income prior to 2017. But he wasn't called back, it was because the then current one left to move to Netflix. Mind you his hands are pretty clear of the entire debacle, unless he moved with a razor-like efficiency to cut costs. But from all the articles I've found on this what we're look at is a longer term strategy. Global and US areas that were doubled up have been incorporated into a single entity. Blizzard's performance has not been up to par as far as Activision is concerned which is why a significant amount of cuts came from there. Although to be fair there were job cuts at some of their other locations around the world. $100 million has been allocated in Q1 for restructuring costs (total of $150 this FY). Dividends paid out per share is looking to be increased by 9% and over the next two years they are projecting to allocate $1.5 billion to repurchase shares.

    So while Blizzard may have made 'record profits' it only tells a very small portion of the story. They're trying to shore up the dyke, consolidate the amount of shares out there so they are less volatile in the market. Looking forward they have what...another CoD reskin later in the year for Christmas and um...errr...we released a WoW expack that didn't do quite as we hoped.

    In that scheme of things, loosing a few CM's and support staff for Esports (Hello advertising revenue! Oh wait wot?!?!? More folks watching Fortnite...farrrrk...) and putting a rocket up Blizzard's bum to get some more developing done of good games...You guys have another SC or WC in you right?

    I could have used a phone, because I do have one, they did get that right, to read all the articles and dig into this little sad story of neo-liberal growth projections and 'safe harbour' clause bound 'where we are headed' claptrap and then have typed out this response. But the fact is my phone is a tool of one kind and my PC a tool of another kind. I use them for different things. Like I bother my wife and child on my phone and see who is calling me before I answer the phone and don't bother with factwigramwhapp because people don't need 10 ways to contact me. Diablo franchise shifting to phone...cool story.

    I've had a look at the Blizzard careers site, they're not rehiring all the positions lost. They did take the biggest hit out of any arm or area. This is simply economics of scale and future projections on turning the stock price around. Cut costs, increase dividends, make less stock available to the public. It does however have a very, very nice side line for Activision. It reduces Blizzard Entertainment's own internal infrastructure. It makes it harder for Blizzard to ever be in a situation where it can walk away readily from a partnership that they think isn't working so well for them any more in the same way Bungie was able to.

    Will be interesting to see it develop over the next 24 months.

    https://www.gamesindustry.biz/articl...izzard-layoffs
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    #10

    I mean, that’s exactly the USP of these jobs, a dream career. Heck, even after I’d consider leaving my current job for a career in the gaming industry.
    I'd be careful what you wish for. The industry right now is very very flakey. Unless you manage to pull of a Chris Roberts and get your funding independent of publishers with a strong fanbase (even through all the years), your job is not guaranteed for a long time.
    Then there's also the need for the game you worked on to be successful, and fulfil deadlines (that are sometimes just rushed out anyways) and sadly be 'popular' with players. If it isn't, and you're not essential, prepare to find a new employer or a major cutback because funding will go away. Unless you're an independent contractor who can move from place to place and be hired on easily, it might also be a dead-end should that happen. It's also about who you know in that industry. Social connections are paramount, as much as a full CV of job titles. And it's not always the most paying career, as they'll want cheaper employees if you're not a big-figure in the business or a personal friend of the company you're in.

    So, unless you really, really love your job and are fantastic at computer in some way shape or form, or know somebody, or have heaps of your own money to kick start things...It might not be a wise idea. But who knows, maybe you could break the odds and have a career there, not just a job that is 50/50. *shrugs*


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    #11
    I'd be careful what you wish for. The industry right now is very very flakey. Unless you manage to pull of a Chris Roberts and get your funding independent of publishers with a strong fanbase (even through all the years), your job is not guaranteed for a long time.
    I mean - every industry is shaky right now, especially with the prospect of long term employment in general. This attitude of companies in return has led to me just thinking for my interests than companies if they are too insecure to offer a life long career and only a job.

    Which is why I’d even change regions in a heartbeat for joining the likes of Blizzard, Digital Extremes, Riot, etc. I’m not talking about working for a new mmorpg either, as that defeats the purpose of their USP. I was very focused hence when I said that this is exactly why Blizzard can get away with this and new employees would still join them, they offer a dream career.

    If at all I wanted to venture into gaming industry on a new game though, It’d be something I have more direct involvement on creative and development aspect of it and certainly in the mobile gaming category.
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