Rumor: Activision Blizzard to Lay Off Hundreds Next Week
Tuesday, February 12th is the date for the next Activision Blizzard (ATVI) investor earnings call. According to Bloomberg, the company will also be announcing layoffs due to "slowing sales". The information has come through "people familiar with the matter". The move will be part of a restructuring initiative that may see hundreds of ATVI employees lose their jobs. It's "aimed at centralizing functions and boosting profit" according to the sources.
If the rumors are true, it caps a rough year for ATVI with the loss of the Bungie partnership to the tune of a loss of nearly a half billion in annual revenue. In addition, there has been churn in the executive branch of the company with a number of leaders leaving including CEO of Activision Publishing Eric Hirshberg, Blizzard CEO Mike Morhaime, Activision COO Spencer Neumann, and Consumer Products Division Leader Tim Kilpin.
Experts are forecasting a drop in annual revenue this year, perhaps as much as 2%. Even news of the rumor of layoffs hit ATVI stocks which dropped 2.5% on Friday.
ATVI isn't alone in its possible financial straits. Take-Two Interactive and EA both stumbled this week after less than stellar reports to investors.
We'll be watching closely come Tuesday when ATVI takes to the virtual airwaves with its financial report.
Read the full report at Bloomberg.
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