Activision Blizzard said on Tuesday it was firing about 50 people in various divisions that are mainly dealing with live events and sports as part of a restructuring. The company cites the COVID-19 pandemic’s impact on the viability of live productions for its sports leagues and the changing viewing habits of its core audience over the past year.
“Players are increasingly choosing to join our games digitally and the e-sports team, like the traditional sports, entertainment and broadcasting industry, has had to adapt its business due to the impact the pandemic had on live events,” an Activision Blizzard spokesman said Bloomberg in a statement.
According to Bloomberg, laid-off employees will receive three months’ dismissal, health benefits for the next 12 months and a $ 200 gift card on Activision Blizzard’s Battle.net computer platform. The dismissal also includes some employees at the mobile company King, the maker of Candy Crush.
Activision Blizzard operates two massive leagues for two of its most popular franchises, Blizzard’s team shooter Ear Watch and Activision’s Call of Duty series. Both leagues had planned global, travel-oriented productions for 2020 before the pandemic, and both had to shift virtually every part of the operation to only online production and remote competition.
“We learned a lot last year about how the online gaming leagues can be structured, and we will strive to pursue best practices from them,” said Tony Petitti, president of Activision Blizzard’s sports and entertainment division. Sports Business Journal in an interview. “In terms of timing, it’s a reaction to the reality of how the leagues play and what resources we need to allocate to best serve the league, owners, teams and supporters.” Petitti says the company is nonetheless “really optimistic.” that its esports business can grow with a new focus on online production.
While the company’s sports business may have suffered from the pandemic, Activision Blizzard’s core business is doing remarkably well. The company’s latest quarterly earnings report, released last month, indicated a record revenue for 2020 that hurt Wall Street expectations, largely due to the continued success of Call of Duty and she War zone battle royal game.
“In a year filled with adversity, our extraordinary employees were determined to connect our 400 million players around the world and bring joy,” said Bobby Kotick, CEO of Activision Blizzard, at the time. ‘They got it right, as well as record financial results for our shareholders. Under difficult circumstances, but with the same conviction and focus, they will continue to do so in 2021. ”
Updated March 16, 17:41 ET: Information about the $ 200 Battle.net gift voucher added as part of the laid-off employee benefits.