Activision Blizzard is still weathering storms from late 2018.

As we have discussed previously, Activision Blizzard has not had a very good 2018. The start of 2019 involved Bungie splitting from the company as well. The departures of key executives, as well as a falling stock price, has seen the company stumble from the perspectives of both gamers and investors. It also didn’t help that the company pulled the plug on the Heroes Global Championship. Nor did any good come out of the Diablo: Immortal announcement, or pulling Diablo 4 at the last minute. The accusations of securities fraud may also be a dark mark on the company’s reputation.

Activision Blizzard Logo

Bloomberg has reported that Activision Blizzard will announce job cuts on February 12. The report states that the company is going to be centralizing functions and boosting profit. According to sources familiar with the company, the layoffs could be primarily in the customer service department due to automation. The Bloomberg report states that hundreds of layoffs are possible, although no definite number has been provided. Activision Blizzard employed 9,800 people as of the end of 2017.

The report also states that the separation of the publisher and Bungie may reduce annual revenue by as much as $400 million. Overall, Activision Blizzard’s sales may fall by two percent. While two percent isn’t a large number, we are looking at an eight-figure reduction in sales.

Can the company justify giving its executives bonuses at this point?

In business, one must either raise revenue or cut expenses to boost profit. PC Gamer has reported that Dennis Durkin, Activision Blizzard’s new chief financial officer (CFO), will receive a $15 million bonus on top of a $900,000 salary and $1.35 million target bonus. The company has not commented on this report, raising even more questions regarding the company’s inner workings and intentions. While Durkin may have the experience and qualifications necessary to be a CFO, the staggering amount of bonuses may raise eyebrows among both investors and gamers.

Do you think the company is a sinking ship? Or can it weather the storm in 2019? Let us know in the comments below!