Activision Blizzard Q4 2018 Earnings Call and Layoffs
Kotaku is reporting that Activision Blizzard is cutting positions across its organizations, including Blizzard. Layoffs at Blizzard are limited to non-development teams, both in the US and regional offices.

  • Activision transferred publishing rights for Destiny back to Bungie earlier this year.
  • Blizzard had 35M MAUs in the quarter, as Overwatch and Hearthstone saw stability and World of Warcraft saw expected declines post the expansion release this summer.
  • Activision Blizzard wants to de-prioritize games and initiatives that aren't meeting expectations
  • Activision Blizzard will be reducing certain non-development and administrative-related costs.
  • Investing more for biggest, internally-owned franchises.
  • More upfront releases, in-game content, mobile, and geographic expansion.
  • Investments in esports leagues and advertising
  • 20% increase in development resources in aggregate for Call of Duty, Candy Crush, Overwatch, Warcraft, Hearthstone and Diablo.
  • World of Warcraft already has a regular cadence of releases and content.
  • Diablo's headcount will grow substantially, as the teams work on multiple projects.
  • There are multiple mobile projects underway across Activision Blizzard.
  • Roughly 8% of staff were laid off.
  • Lots of great people are looking for work:

Bobby Kotick, Chief Executive Officer of Activision Blizzard said “While our financial results for 2018 were the best in our history, we didn’t realize our full potential. To help us reach our full potential, we have made a number of important leadership changes. These changes should enable us to achieve the many opportunities our industry affords us, especially with our powerful owned franchises, our strong commercial capabilities, our direct digital connections to hundreds of millions of players, and our extraordinarily talented employees.”
This article was originally published in forum thread: Activision Blizzard Q4 2018 Earnings Call and Layoffs started by chaud View original post
Comments 213 Comments
  1. The Stormbringer's Avatar
    Quote Originally Posted by Aeula View Post
    Well, I guess that guy who was trolling us earlier today with a 'YTHISENS AND LORE SHOULD BE FIRED!' is going to be half-way happy.
  1. Kathranis's Avatar
    Quote Originally Posted by Voidwielder View Post
    lol fuck rip wow
    WoW is still their biggest earner. They are clearly talking about StarCraft and Heroes of the Storm.

    They are actively growing the development teams for WoW, Overwatch, Diablo, and Hearthstone.
  1. Gadzooks's Avatar
    Quote Originally Posted by Bennett View Post
    Way to fire one of the only decent CM's blizz lmfao
    How many CMs are there these days, anyway? Him and Lore are the only ones I can name, although I haven't poked around their forums in a long time.

    So there's some good from this, if Lore has to actually work, he'll melt down faster.
  1. Cazmosis's Avatar
    How did Josh Allen survive this purge?
  1. Aeula's Avatar
    Aerythlea might be gone too. From the EU forums.

    https://twitter.com/ashliiful/status...40834672160769
  1. crusadernero's Avatar
    Makes record profit. Leaders gets huge bonuses and salary. Starts firing people. Keep the work on creating shitty ass games with some kind of cashshop.

    Oh Blizzard, I feel sorry for you. Your passion for games, creating your awesome universes with great gameplay and story and share them with us. All you once wanted was to share just that.

    Now its more about the dollar dollar bill.
  1. Frostyfire14's Avatar
    They purged the only CM for NA that was engaging with the community on the official forums. Thanks for nothing.
  1. Kathranis's Avatar
    Quote Originally Posted by Howlrunner View Post
    the company is just profit whoring
    Hate to break it to you, but that's the point of a company. Especially a publically traded company.

    It's not good enough for a company to be profitable and to continue being profitable, they have to keep increasing the profit margin every quarter.

    Even if they're doing record numbers overall, their profits aren't breaking records, so it was considered a bad quarter. The layoffs are also moreso in anticipation of a lean 2019 than they are a response to a poor 2018.
  1. telygroar's Avatar
    Quote Originally Posted by Walross View Post
    This pairs perfectly well with my comment above.
    And I said it's about the explanation, thanks for participating :P
  1. Gadzooks's Avatar
    Quote Originally Posted by crusadernero View Post
    Makes record profit. Leaders gets huge bonuses and salary. Starts firing people. Keep the work on creating shitty ass games with some kind of cashshop.

    Oh Blizzard, I feel sorry for you. Your passion for games, creating your awesome universes with great gameplay and story and share them with us. All you once wanted was to share just that.

    Now its more about the dollar dollar bill.
    Just gonna point something out here: Blizzard didn't make the decision to make these layoffs did. ATVI did. In this one instance where Bobby Kotick and ATVI are clearly in the wrong for this decision, you're all...blaming Blizzard?

    Having been through layoffs in my own career, I can tell you one thing - they GUT the people who have to decide who to cut, when orders come down from up high. I guarantee you there are people at Blizzard right now who feel like they're utter shit because they have to fire people.
  1. telygroar's Avatar
    Quote Originally Posted by Krimsonmyst View Post
    It's non-development staff. They just closed the e-sports division for HotS and gave the publishing rights for Destiny back to Bungie. There are staff that were in these roles which are no longer needed. This is a perfectly sound business decision.
    Ho, yeah, I understand that, even if it's not like people can be reassigned, but it's another discussion. It's about the "we have the best profit and sales ever, so we fire people", it's just the worst momentum, always the worst communication ever. Like at blizzcon with the D3 smartphone thing.
  1. mvaliz's Avatar
    Quote Originally Posted by The-Shan View Post
    As long as they give me more narratively driven Warcraft experiences, I'm interesting. Hopefully, this influx of talent also means an influx of new ideas and leadership with more upward movement for innovators.
    After reading this and, coupled with that avatar, I feel like smiling innocently and patting you on the head with a mix of both pitty for the naivety but also knowing you're trying to be a "good kid" with an optimistic view on things. >.>
  1. yamix's Avatar
    Whoa, 8%. That's quite a lot.
  1. Malikath's Avatar
    Quote Originally Posted by Kathranis View Post
    Hate to break it to you-
    love to break this to you.

    NO-ONE. FUCKING. CARES.

    no one cares what a company is supposed to do, no one cares what the investors want, no one fucking gives a shit about the profits.

    they want a game, preferably a good one, and if acti/bliz is out of the business of making them then they're quickly going to go out of business altogether.
    because at the end of the day, it's not their choice that determines the profits, it's the customer's.
    both Ea and acti should of learned that lesson this year, guess they'll only learn it when it's pounding into their head at the unemployment line or better yet, the court room.
  1. Panmisiek's Avatar
    I dont feel sorry for them at all. In fact they are victims of their own doings and any of you criticising layoffs played integral part in doing this anyway.

    Hypocrites quickly forgot a reddit letter they signed by 100k people at the time a month ago about WoW direction and now standing to defend ordinary employees? What did you actually thought is going to happen? Failed game turned 180 degrees all of a sudden?

    I played it all. Diablo, Warcraft, Starcraft. Long before you most of you were born. I seen rise of this empire and now downfall. They imposed on it themselves. Is Activision to blame? Perhaps.
  1. ONCHEhap's Avatar
    Can't wait for Kotick to die
  1. Boricha's Avatar
    Seems ambiguously worded enough that it's hard to make any real commentary without seeing what they do (or how funds are allocated).
  1. The Stormbringer's Avatar
    Quote Originally Posted by Walross View Post
    They didn't, actually.
    You got a source that they didn't? I've seen plenty of articles from relatively reputable sources saying otherwise.

    Quote Originally Posted by crusadernero View Post
    Makes record profit. Leaders gets huge bonuses and salary. Starts firing people. Keep the work on creating shitty ass games with some kind of cashshop.

    Oh Blizzard, I feel sorry for you. Your passion for games, creating your awesome universes with great gameplay and story and share them with us. All you once wanted was to share just that.

    Now its more about the dollar dollar bill.
    I think it's more that Acti-Blizz has been handing down proclamations from on high to Blizzard Entertainment, the people who actually make the games. Very sad.
  1. crusadernero's Avatar
    Quote Originally Posted by Gadzooks View Post
    Just gonna point something out here: Blizzard didn't make the decision to make these layoffs did. ATVI did. In this one instance where Bobby Kotick and ATVI are clearly in the wrong for this decision, you're all...blaming Blizzard?

    Having been through layoffs in my own career, I can tell you one thing - they GUT the people who have to decide who to cut, when orders come down from up high. I guarantee you there are people at Blizzard right now who feel like they're utter shit because they have to fire people.
    Yes, you are probably right. Maybe some part of the old Blizzard is there, somewhere. I feel sorry for those who gotta fire people, but most sorry for the people getting fired. Especially all the while knowing that the company is making record profit.

    It just sucks that it all, in the end, is all about the money. Like Activison never can get enough of it. No amount is ever enough. No matter what. They will stomp and do whatever to generate more money. If that means ruining everything Blizzard once were while firing people, then so be it.
  1. Martymark's Avatar
    He was one of my favorites. He obviously loved the game and community. Sad to see him go.

    Meanwhile scumbags Lore and Ion probably got raises.

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