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‘Record’ results can’t stop job losses at Activision Blizzard

Monday, February 13, 2017 8:17
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(Before It's News)

When your company boasts about “record” financial results, most workers would think a bonus is just around the corner, not job cuts.

Unfortunately for some at video game maker Activision Blizzard, Inc. (NASDAQ:ATVI) – the home of the Call of Duty franchise – that’s exactly what happened.

At the end of last week, Activision reported a 42% increase in revenues to US$6.6bn (2015: US$4.7bn) for the 12 months to 31 December 2016.

Digital sales were a big factor behind the rise, almost doubling over the period US$4.9bn. In fact, Activision made more money from digital sales alone in 2016 than it did in total the year before.

The numbers were impressive, even before the company put them into context: “In 2016, consumers spent approximately 43bn hours playing and watching Activision Blizzard content, on par with Netflix and over one-and-a-half times Snapchat.”

The strong performance wasn’t enough to stop the Activision Publishing division from laying off 5% of its staff.

Employees at the subsidiary’s Infinity Ward and Beenox studios – responsible for Call of Duty: Infinite Warfare – were affected, as well as some from the company’s headquarters in Santa Monica.

Twenty of those let go were Call of Duty developers, who possibly paid the price for weaker-than-expected sales of the hit game last year.

The company released a statement which read: “Activision Publishing is realigning our resources to support our upcoming slate and adapt to the accelerating transition to digital, including opportunities for digital add-on content.”

The group’s line-up for the coming year is much smaller than 2016’s, with Destiny 2 and a new Call of Duty game the only confirmed releases so far. 

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/173076/record-results-cant-stop-job-losses-at-activision-blizzard-173076.html

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