layoffs ahead at Activision Blizzard

Community Discussion
rng games take little talent. they get spit out daily. the same teams who lazily create games that eliminate skill based play are now victims of their own actions. you dont need large teams to run these games. keep coding yourselves out of a job lol....
02/12/2019 12:22 PMPosted by Rabbit
How comfortable is everyone with spending $$ for the next expansion?


i dont understand your question

Activision Blizzard is laying off approximately 775 people — 8% of its 9,600-person staff — as it refocuses its efforts on its Call of Duty, Candy Crush, Overwatch, Warcraft, Hearthstone and Diablo franchises.


The company added it would be increasing development resources by 20 percent in 2019 on those franchises it is now focusing on
Yeah, news wasn't bad for Hearthstone today in the earnings report, afaik.

"Hearthstone needs more TLC." - Brandon Ross, game industry analyst featured on CNBC
https://www.theverge.com/2019/2/12/18222484/activision-blizzard-layoffs-cuts-jobs-record-results-2018

https://www.engadget.com/2019/02/12/activision-blizzard-layoffs-800-employees-record-2018/

https://kotaku.com/activision-blizzard-begins-massive-layoffs-1832571288

RIP Hearthstone Feb 2019
Layoffs have hit Activision/Blizzard. In the list of people who have been let go, almost all Community Manager positions are now without a job. This includes Jesse Hill, who was the Hearthstone Community Manager.

Jesse has done a lot in their tenure here, and I know that there are many who are frustrated with the lack of answers and communication recently, but obviously there are other things going on.

I personally wish Jesse the best of luck in the future and hope that everyone else who just lost their jobs land on their feet quickly.
This is all the more disgusting when the CEO is boasting about record profits for the company while 800 people are given pink slips.
02/12/2019 03:28 PMPosted by StevenSensei
This is all the more disgusting when the CEO is boasting about record profits for the company while 800 people are given pink slips.

maybe bungie leaving had something to do with it

the layoffs taking place a month later cant be a coincidence
Wow... Activision just announced record profits this year for Activision-Blizzard.

Meanwhile 800 people crying about losing their job.

This REALLY enrages me, very disgusting and horrible... shame on this company...

Treating hard working employees like tools..

Hearthstone is literally the only remaining Acti-Blizz game I play, but I might as well abandon with this game too. I don't support companies ran by psychopaths.
02/12/2019 04:19 PMPosted by Warsong
Wow... Activision just announced record profits this year for Activision-Blizzard.

Meanwhile 800 people crying about losing their job.

This REALLY enrages me, very disgusting and horrible... shame on this company...

Treating hard working employees like tools..

Hearthstone is literally the only remaining Acti-Blizz game I play, but I might as well abandon with this game too. I don't support companies ran by psychopaths.

but they fired almost as many people in 2012 and it seems you ve been playing for a while
02/12/2019 03:28 PMPosted by StevenSensei
This is all the more disgusting when the CEO is boasting about record profits for the company while 800 people are given pink slips.

02/12/2019 04:19 PMPosted by Warsong
Wow... Activision just announced record profits this year for Activision-Blizzard.

Meanwhile 800 people crying about losing their job.

This is unfortunately business as usual for large corporations.

To attract investors companies need to show continual economic growth, most executives are paid a bonus depending on the growth of a company. If growth is slowed down due to external factors (including little/no potential for additional customers), the only option is to cut internal costs. Which usually means mass layoffs for any department that isn't essential to the core business.

And if you're one of those who dabble in the stock market you are part of the reason corporations do this kind of stuff. Oh and your retirement fund? They're also very likely to try and squeeze money out of the stock market.
(copy paste part of my post in another thread):

For me, it's not only that, but recently it's been revealed that Blizzard employees are very under-payed. They can barely pay their rent with the Blizzard job they have, while the top at Blizz and Acti are throwing at each other millions.

So this company is not only trying to rip off their own player-base, but also they are kicking/abusing the peope around that make the business run. Horrible company... maybe that's the standard how it works in cooperate world. But if that's Blizzard in nutshell, this is not an organization that should have "fans" in the first place...
02/12/2019 08:16 AMPosted by Mand
People look at stock prices in isolation far too often. Just about all the game publishers got crushed in recent weeks, primarily because they all released numbers and they all aren’t Epic Games.

Fortnite is massively reshaping the developer landscape. We’re seeing the fallout now. Investors see the $3 billion profit (not revenue) that Epic banked in 2018, and everyone else looks like chumps.

As a point of comparison, Sony has made about twice that over the entire life of the Playstation brand.


Jim Sterling has pointed out that to keep stock investors happy companies are effectively trapped in this units sale must be bigger then the last mentality. As a result they have to make projections that odds are not going to be meet which causes enough of the Know Nothing stock investors to pull out when the numbers coming in that they have to fire/layoff a crap load of people which as thanks to the previously mentioned Know Nothing stock investors results in the stock going up.

If stocks went further down (as in tank) when companies announced these firings/layoff odds are they would stop doing it.
This is all the more disgusting when the CEO is boasting about record profits for the company while 800 people are given pink slips.


They didn't boast about record PROFITS. They boasted about record REVENUE. There's a huge difference. I could have fantastic revenue and sell 100 billion dollars worth of products ... but if my expenses added up to 100 billion dollars then I had zero profit and I was doing nothing but spinning my wheels (from an investment perspective).

Activision/Blizzard had high revenue, but not good profits. That's pretty clear from the report.
02/13/2019 08:42 AMPosted by TheRiddler
This is all the more disgusting when the CEO is boasting about record profits for the company while 800 people are given pink slips.


They didn't boast about record PROFITS. They boasted about record REVENUE. There's a huge difference. I could have fantastic revenue and sell 100 billion dollars worth of products ... but if my expenses added up to 100 billion dollars then I had zero profit and I was doing nothing but spinning my wheels (from an investment perspective).

Activision/Blizzard had high revenue, but not good profits. That's pretty clear from the report.


But how many investors actually read and understand those reports? John Q. Public has been conditioned to think when they hear 'company x made y dollars this year' to think profit not revenue.
But how many investors actually read and understand those reports?


Oh - trust me - the investors read and understand those reports very very clearly. They aren't suckered by companies that brag, "We had record revenues in 2018...!". The investor class rolls their eyes at statements like that and asks for the SG&A numbers, which spells out exactly how much revenue the company had versus its expenses.

But - if the comments I've seen on Reddit, Kotaku, and this forum are any indication - the majority of the John Q. Publics out there don't understand this for squat. Way too many people are making idiotic posts about the CEO getting a bonus while letting 800 people go in a year of "record profits".

Sadly, the state of education on basic economics out there is making even economic dimwits like Ocasio Cortez look like Einsteins.
02/12/2019 08:14 AMPosted by GostTemplar
That or it could be plain economics with no one having money now days. I mean living cost went up with the price of food or other goods and different bills too.


Not that. They made a record 7.16 billion. The idea that "no one having money now days" is completely wrong anyway. Corporations have a ton of it. They laid these people off after making record profits. They said they failed to hit projections. Awful stuff. Dont give them any more money because they are misbehaving at the cost of people's lively hoods.
02/14/2019 07:11 AMPosted by TheRiddler
But how many investors actually read and understand those reports?


Oh - trust me - the investors read and understand those reports very very clearly. They aren't suckered by companies that brag, "We had record revenues in 2018...!". The investor class rolls their eyes at statements like that and asks for the SG&A numbers, which spells out exactly how much revenue the company had versus its expenses.

But - if the comments I've seen on Reddit, Kotaku, and this forum are any indication - the majority of the John Q. Publics out there don't understand this for squat. Way too many people are making idiotic posts about the CEO getting a bonus while letting 800 people go in a year of "record profits".

Sadly, the state of education on basic economics out there is making even economic dimwits like Ocasio Cortez look like Einsteins.


To be fair much of that is due to the way things are reported. A good counterargument to the above is the fact that part of that bonus counts as a explicit cost against revenue. The logic that if the CEO wasn't getting that bonus then the lost would be less or there might be a profit is a valid one.

If you are wondering I have an associates in accounting and so can work my way through a balance sheet. From what i have seen of the Financial results reports the average investor is not getting a detailed enough report to know where things should be cut.

Also per Activation/Blizzard's own 2018 Financial Results at the end of Dec 31, 2018, for the year they had a Net income (loss) of $1,813 (Amounts in millions).

Net not Gross income. "In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss." So with a profit of $1,813 million ie $1.8 trillion they lay off 800 people. Try to explain (rather then down voting this) how that makes any lick of sense.
02/15/2019 05:23 AMPosted by Fattylumpkin
02/12/2019 08:14 AMPosted by GostTemplar
That or it could be plain economics with no one having money now days. I mean living cost went up with the price of food or other goods and different bills too.


Not that. They made a record 7.16 billion. The idea that "no one having money now days" is completely wrong anyway. Corporations have a ton of it. They laid these people off after making record profits. They said they failed to hit projections. Awful stuff. Dont give them any more money because they are misbehaving at the cost of people's lively hoods.


Agreed. Per their own 2018 Financial Result ( https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-fourth-quarter-and-2018-financial ) had a Net income (loss) of (in millions) of $1,813 at the end of Dec 31, 2018 and $650 for the quarter ending Dec 31, 2018

"In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss." So with a profit of $1,813 million ie $1.8 trillion they lay off 800 people. You can't even invoke the fig leaf of a bad quarter because that was $650 million.

Try to explain (rather then down voting this) how laying off those people makes any sense.

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