Activision Blizzard Announces Record Year Revenue, Then Lays Off 800 Employees

During Activision Blizzard’s fourth quarter earnings call, the video game company announced it will lay off 8% (about 800) of its 9,600 employees, mostly from non-development and administrative departments.

The news came right after executives announced a record fiscal revenue of $7.5 billion in 2018, up 7.1% year-over-year. Their overall revenue exceeds expectations, but net bookings (metric for digital and sold-in physically sales) were 3% short of its forecast, $7.26 billion. The company has no plans to release major games in 2019, lowering their forecast outlook to $6 billion. Activision Blizzard plans to boost the number of developers working on major franchises (Call of Duty, Overwatch, Warcraft, Hearthstone, Diablo, and Candy Crush) by 20%, using funds from the layoff.

The video game giant will also buy back $1.5 billion in stock and increase its dividends by 9%. Their stock has gone up 5.5%. Many are speculating Activision Blizzard is providing more value for investors with dividend increases at the cost of people’s jobs. There’s been an outpour of support for those being laid off.

Image Source: Yahoo Finance

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Activision Blizzard Announces Record Year Revenue, Then Lays Off 800 Employees

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