Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

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

Monday, February 13, 2017 8:17
% of readers think this story is Fact. Add your two cents.

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


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.