Activision Blizzard has faced a backlash over its decision to lay off more than 800 employees, despite reporting record profits in 2018. The company stated that the layoffs were necessary to consolidate its operations and focus on its core businesses, but critics have accused Activision Blizzard of prioritising profit over employee welfare. The decision has also raised questions about the company’s long-term strategy. Activision Blizzard’s response to the backlash has been largely defensive, and some have called for a boycott of the company’s products. The situation highlights growing concerns over employee welfare in the gaming industry.
Activision Blizzard faces backlash over employee lay-offs
Introduction
Activision Blizzard, one of the world’s largest video game publishers, has recently announced its decision to lay off more than 800 employees despite reporting record profits in 2018. This move has sparked outrage among the gaming community, industry analysts, and even some politicians.
Background
Activision Blizzard is the result of the merger between Activision and Blizzard Entertainment in 2008. The company is known for its popular game franchises such as Call of Duty, World of Warcraft, and Overwatch. In 2018, the company reported a record revenue of $7.5 billion, up from $6.6 billion the previous year.
The Lay-offs
On February 12, 2019, Activision Blizzard announced its decision to lay off 8% of its workforce, which translates to more than 800 employees. The company stated that the layoffs were necessary to consolidate its operations and focus on its core businesses. The affected employees were from across different departments, including publishing, esports, and customer service.
The Backlash
The announcement of the layoffs has sparked outrage among the gaming community, industry analysts, and even politicians. Many have criticized Activision Blizzard for prioritizing profits over its employees, especially after reporting record revenues in 2018.
Some industry analysts have also questioned the need for the layoffs, considering that the gaming industry is experiencing steady growth. The decision to lay off employees at a time when the company is making significant profits has raised questions about the company’s long-term strategy.
The Response
Activision Blizzard’s response to the backlash has been largely defensive. In a statement, the company stated that the layoffs were necessary to streamline its operations and prepare for future growth. The company also stated that it will be offering severance packages and job placement assistance to the affected employees.
However, critics have argued that these measures do not address the underlying issues of job security and employee welfare. Some have called for a boycott of Activision Blizzard’s products, and others have called for the company to be more transparent about its decision-making process.
Conclusion
The backlash over the lay-offs at Activision Blizzard highlights the growing concern over employee welfare in the gaming industry. As video games continue to become a more significant part of the entertainment industry, it is important for companies to prioritize the well-being of their employees as much as their profits.