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Job Cuts For Activision Blizzard

March 1, 2012

Activision Blizzard announced that the company was laying off 600 employees globally. The company makes World of Warcraft (WOW) and has seen a drop-off of subscribers recently.

The company announced that ninety percent of the layoffs come from divisions unrelated to game development, meaning that no developers for WOW will be affected by the financial decision.

Subscribers to the virtual world are important for Activision. World of Warcraft is the company´s most profitable business, generating a constant source of revenue from its millions of monthly subscribers.

WOW, which is seven years old, has seen a steady decline in subscribers recently. The company ended 2011 with 10.2 million subscribers, down from 10.3 million users in the previous quarter. The company lost 700,000 subscribers alone during the third quarter of 2011.

Even though Activision Blizzard is cutting jobs, it is still committed to its schedule of future releases. They are expected to release titles including Starcraft 2: Heart of the Swarm, Diablo 3, and WoW: Mists of Pandaria.

Mike Morhaime, Blizzard president and CEO told ArsTechnica, “Constant evaluation of teams and processes is necessary for the long-term health of any business. Over the last several years, we´ve grown our organization tremendously and made large investments in our infrastructure in order to better serve our global community.”

Company´s like Activision and Electronics Arts are having some difficulty as the gaming industry evolves. They are now competing with young startups such as Zynga who produces free internet games for websites such as Facebook´s Words With Friends.

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Source: RedOrbit Staff & Wire Reports



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