Activision Blizzard Reports Layoffs of 8% After Reporting Record Revenues

Activision Blizzard Reports Layoffs of 8% After Reporting Record Revenues

Activision Blizzard Reports Layoffs of 8% After Reporting Record Revenues

2018 was a record year for Activision Blizzard, with the company reporting net revenues of $7.50 billion, representing a staggering increase over the $7.02 billion that was earned in 2017. 

Back in 2015, Activision Blizzard’s yearly revenues were $4.664 million, 60% of the company’s 2018 revenues, showcasing the company’s insane growth over the past three years. Even with this tremendous growth, with 2018 delivering the best financial results in the company’s history, Activision Blizzard CEO Bobby Kotick has stated that “we didn’t realise our fullest potential”. 

During the company’s latest earnings call, Activision Blizzard’s COO (Chief Operating Officer), Coddy Johnson, stated that the company would lay off “approximately 8%” of the company’s workforce. This is estimated to impact around 800 members of staff. 

Last month, Activision Blizzard took on Denis Durkin as CFO (Chief Financial Officer), who was given $15 million for taking the job, an award that consists of $11.3 million in the company’s stock and $3.75 million in funds. This is on top of the job’s $900,000 salary and $1.35 million target bonus. That’s a lot of money to throw around given the company’s planned layoffs. How many jobs would the $3.75 million save alone?  

Job losses are expected to impact Activision Blizzard’s community focus departments and eSports divisions the hardest, hitting areas of the company that are not involved in game programming, design and artwork the hardest. The World of Warcraft development team is reportedly unaffected. 
   

Activision Blizzard Reports Layoffs of 8% After Reporting Record Revenues  

One gem in Activision Blizzard’s 2019 earnings projections is that they plan to give shareholders a 9% increase in share dividends, a change which comes after an 8% reduction in staff levels. This is a prime example of what happens when shareholder expectations steer a company, and what happens when the promise of increased profitability comes before everything else. 

You can join the discussion on Activision Blizzard laying off around 8% of the company’s staff on the OC3D Forums.