Activision Blizzard is cutting hundreds of jobs despite having the best year ever as the company's 2018 net revenue topped out at $7.5 billion (up six percent from 2017).
Despite earning immense profits and having the best year ever, CEO Bobby Kotick was disappointed. He says the company simply didn't meet its goals and that changes have to be made. In addition to shedding hundred of jobs, Activision Blizzard will be de-prioritizing initiatives that are considered not to be meeting expectations. The company is also engaging in across-the-board cost-cutting by reducing certain non-development and administrative-related expenditures. Activision Blizzard did say, however, that the company will increase development investment in its biggest franchises so that development teams can accelerate the pace and quality of content and will also be supporting a number of new product initiatives.
“While our financial results for 2018 were the best in our history, we didn’t realize our full potential," he says. "To help us reach our full potential, we have made a number of important leadership changes. These changes should enable us to achieve the many opportunities our industry affords us, especially with our powerful owned franchises, our strong commercial capabilities, our direct digital connections to hundreds of millions of players, and our extraordinarily talented employees.”
The layoffs came as a surprise to many across the video game industry. Several video game studios and developers tweeted out their sorrow and support for the pink-slipped workers.
Our heart goes out to those who were affected in the recent layoffs at Activision Blizzard.— Obsidian (@Obsidian) February 12, 2019
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At closing on Feb. 2, Activision Blizzard (ATVI)'s stock price was listed at $41.67, up 3.8 percent on the day.