Activision Blizzard to Cut Hundreds of Jobs Following Stock Plummet

Activision Blizzard is facing mass layoffs next week according to reports

Activision Blizzard is facing mass layoffs next week according to reports

Activision Blizzard will announce hundreds of job cuts next Tuesday as stock continues to plummet following news that Bungie would be ending its contract with the publisher, Bloomberg reports.

The layoffs are part of a restructuring aimed at "centralizing functions and boosting profit", an anonymous source told Bloomberg.

Last year, Blizzard also abruptly ended the esports program for Heroes Of The Storm, one of the company's least financially succesful games. That sounds like the job losses will be in administration roles rather than in development teams which is probably for the best as apart from the odd Spyro or Crash game Activision relies exclusively on Overwatch and Call of Duty, and Blizzard on Warcraft.

The cuts will follow a tumultuous stretch for Activision, which reported stable Overwatch monthly active users in its Q3 2018 earnings report but a decline in Hearthstone, and also expressed disappointment in the performance of Destiny 2: Forsaken.

Shares at the company have dropped by 2.5% to $42.88 on Friday, with analysts expecting the company's sales to drop by an estimated 2% this year to £7.28 billion.

Blizzard has seen no shortage of controversy this year; they've lost a CEO, paid employees to leave, and taking center stage is the infamous Diablo: Immortal announcement.

While there's no official word from Activision, according to Kotaku, the layoffs will primarily target non-development positions - publishing, marketing, sales, etc. Activision would have no doubt had a massive team dedicated to just the Destiny 2 IP.

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