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The layoffs occur before the fourth quarter results of Activision Blizzard.
By Seth G. Macy
Activision Blizzard began the process of laying off staff prior to the release of its fourth quarter results. During the conference call, he said that the downsizing would affect about 8% of its workforce, or nearly 800 employees.
According to a report by Kotaku, Blizzard President J. Allen Brack sent a note to Activision Blizzard staff stating that "the strength of some teams is out of proportion to our current catalog of releases." that we have to reduce some of our organization. "
The press release accompanying the fourth quarter results report states that Activision Blizzard will increase the size of the development teams of "its largest franchises, which will allow teams to accelerate the pace and quality of the content. "
Teams working on "Call of Duty, CandyCrush, Overwatch, Warcraft, Hearthstone and Diablo" are expected to experience "growth of about 20%" during the year, but some of this growth comes from the reduction of activities "initiatives that do not meet expectations ", as well as" the reduction of some non-development costs and administrative costs ".
In its fourth quarter earnings report, Activision Blizzard cited "record net revenues" of $ 7.5 billion for 2018. However, cash flow from operations was down significantly from 2017, from $ 2.21 billion to $ 1.79 billion for the year ended December 31, 2018. Chairman and CEO, Bobby Kotick, said during the conference call with investors that the company " had not performed as well "as she had hoped last year, referring to such parameters as scope and commitment.
Activision Blizzard said net bookings, referring to in-game spending on items such as surprise boxes and card packs, are in decline for Hearthstone and Overwatch.
The letter only concerns US personnel, but Brack added that in the company's regional offices, it "anticipates similar badessments, subject to local requirements."
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