Activision Blizzard, the entertainment leviathan formed when Activision merged with Blizzard parent Vivendi Games in 2007, has boasted of its best financial year on record - and is celebrating by laying off almost 800 of its staff. "We expect materially lower financial performance this year". Analysts expect Activision's sales to decline by about 2 percent this year, to $7.28 billion but two new games launched by the company Overwatch and Hearthstone, have been seeing flat or declining numbers of users in past months.
Kotaku also reported that the staff-cuts mainly affect Activision's publishing side, Blizzard employees not involved in game development, King Digital and developers like High Moon. With almost 10,000 employees by the company's last count, this amounts to almost 800 people losing their jobs.
Video game maker Activision Blizzard is laying off almost 800 workers as the company braces for a steep downturn in revenue following the best year in its history.
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In the midst of yesterday's unfortunate news dealing with the layoffs at Activision-Blizzard, more information about upcoming releases for 2019 were divulged during the publisher's earnings call. There have also been rumors of a Diablo animated television show also in the works, though it looks like the focus here is for game development entirely. "We're making changes to enable our development teams to create better content for our biggest franchises more quickly". I'm sorry to share that we will be parting ways with some of our colleagues in the U.S. today. "In our regional offices, we anticipate similar evaluations, subject to local requirements".
The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E. Activision Blizzard (NASDAQ:ATVI) has a current PEG of 2.78. Kotaku published an article about cost-cutting measures being taken by Blizzard and concerns over Activision's influence over Blizzard. Fortnite's marketing efforts constantly bring a level of hype to the game, while Activision Blizzard's fall slightly short - all due to the fact that Fortnite is completely free.
Those who are being let go will receive a "comprehensive severance package", will continue to receive their health care benefits, have access to career coaching and job placement assistance.