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Activision Lays Off 50 Employees

Esports article at Knup Sports

The big gaming company, Activision, has been on a streak laying off its employees by the dozen, especially with the pandemic. Call of Duty was a big hit as many people switched over to working from home. 

However, Activision laid off 50 more employees; however, the CEO Bobby Kotick is set to receive a $200 million payout. Some of those fired will include those from the mobile firm King, the creators of Candy Crush, who are owned by Activision.

What Kind Of Effect Does This Have On The Company

The mega-publisher stated that the company laid off employees from various divisions across the company predominantly affecting the live events and the esports sector.

The company stated that the global pandemic has affected both the production of live events for the many esports leagues and the changing of the platforms where these games can be viewed has affected the viewership of its core audience over the past year.

An Activision spokesperson via Bloomberg stated, “Players are increasingly choosing to connect with our games digitally and the e-sports team, much like traditional sports, entertainment, and broadcasting industries, has had to adapt its business due to the impact the pandemic has had on live events.”

Another spokesperson stated that the layoffs will not affect the company’s commitment to live Call of Duty and Overwatch events.

The spokesperson told GamesIndustry said, “Live events are still very much a part of both the Overwatch League and Call of Duty League strategies. We plan to get back to them as soon as it’s safe to do so and logistically feasible.”

The employees who were recently fired will get some aid in this tough process of looking for a new job. The ones who got laid off will get a three-month severance, health benefits for the next year, and a $200 gift card to Activision Blizzard’s PC platform.

CEO Bobby Kotick

In 2019, the company the pandemic hit Europe hard as the company had to let go of 134 employees in France which led to the shut down of Activision’s office even though the company stated that they needed to hire 2,000 new employees to meet the demands during the pandemic.

It did not stop there as the company had to fire 30 or more employees in its various Asia-Pacific offices.

When the year came to an end, the company had fired around 800 plus employees while the CEO was making 30 million dollars and a $200 million payout due to a “Shareholder Value Creation Incentive” clause in his contract. 

“In a year filled with adversity our extraordinary employees were determined to provide connection and joy to our 400 million players around the world,” Activision Blizzard CEO Bobby Kotick said at the time.

“They accomplished this as well as generating record financial results for our shareholders. Under difficult circumstances, but with the same conviction and focus, they will continue to do so in 2021.”

Stock Price

The company’s esport department has taken a loss, but their quarterly earnings surpassed Wall Street’s expectations during this tough time.

However, this month the stock is down over 13 percent due to investors in the tech sector being weary due to yields and other factors. Still, the business model has been a success as the stock price hovers around $90, and it’s not a bad day for the CEO.

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