Activision Blizzard is planning an employee downsizing on the 12th.
Bloomberg announced on the 8th that Activision Blizzard will lay off hundreds of employees as a means of “centralization and way of boosting profit”.
This downsizing is interpreted as a result of their underperformance starting from the third quarter of 2018. In last November, Activision Blizzard admitted through a conference call that, although Call of Duty was a success, the total users of some of their main titles such as Overwatch and Hearthstone is flat or gradually decreasing. As a matter of fact, Activision Blizzard parted ways with Bungie after Destiny 2: Forsaken’s sales hit a low point.
Analysts predict that the aforementioned move will lead to a $400 million reduction in revenue for Activision Blizzard. Also, their 2019 sales are predicted to be reduced by 2% compared to last year- down to $7.28 billion.
Sources say that this restructuring will strike other parts of the company including their subsidiary, Blizzard, as well. However, it is yet unclear which department or studio will be affected most.