The layoffs that Activision Blizzard had been rumored to have been planning have just begun. The gaming giant will be laying off 8 percent of its entire workforce, which comes out to roughly 775 people.
According to Activision Blizzard CEO Bobby Kotrick, the layoffs come from an attempt in “de-prioritizing initiatives that are not meeting expectations and reducing certain non-development and administrative-related costs across the business.”
The hundreds of layoff are also coming despite Bobby Kotrick reporting “record results in 2018.”
While achieving record results, the company missed the expectations of investors.
The recent cuts most likely are directly linked to Activision Blizzard’s large cost-cutting move as Kotrick stated that the company would restructure due to the missed expectations. The jobs affected by these layoffs were in non-game development roles such as publishing and e-sports according to Kotaku.
Kotaku was able to acquire a company note sent to employers from Blizzard President J. Allen Brack.
“Over the last few years, many of our non-development teams expanded to support various needs. Currently, staffing levels on some teams are out of proportion with our current release slate. This means we need to scale down some areas of our organization in the US today. In our regional offices, we anticipate similar evaluations, subject to local requirements.”
According to Kotaku as well, the letter indicated that those being laid off from the company would be receiving comprehensive a severance package, continued healthcare benefits, and career placement assistance.
Many are criticizing the company for their decision to cut so many people from their business, citing the time when Nintendo President and CEO Satoru Iwata cut his own pay by 50 percent following a downward turn in Nintendo’s profits. Because of Mr. Iwata’s pay cuts, Nintendo workers weren’t laid off.
While it would certainly be nice to see those in the higher positions taking such responsibility, it seems that Activision is continuing its greedy ways and no one will be this honorable any time soon.