Activision Blizzard will announce hundreds of job cuts next Tuesday as stock continues to plummet following news that Bungie would be ending its contract with the publisher, Bloomberg reports.
Shares at the company dropped as much as 2.5% to $42.88 on Friday, while analysts expect the company’s sales to drop by roughly 2% this year, to $7.28 billion. Layoffs will be part of the restructuring process aimed to centralize functions and boost profits.
Activision is known to be working on a new Call of Duty title, “Crash Bandicoot N. Sane Trilogy,” and “Crash Team Racing: Nitro-Fueled.” Blizzard continues support for a slew of its biggest titles including “Overwatch,” “Hearthstone,” and the “World of Warcraft,” “StarCraft,” and “Diablo” franchises. King is actively supporting “Legend of Solgard” and “Candy Crush Friends Saga.” Activision Blizzard is also acting as publisher for FromSoftware-developed “Sekiro: Shadows Die Twice.” The company also has extensive interest in eSports through a number of its franchises, most notably “Overwatch” and “Call of Duty.”
But in a November conference call, the company revealed that titles including “Overwatch” and “Hearthstone, were seeing flat or declining numbers. And the company experienced a big hit after parting ways with Bungie following disappointing sales of “Destiny 2: Forsaken”. Bungie would retain the rights of its “Destiny” franchise, news which was reflected at the time in a 7% drop in postmarket trading.
Last month the company experienced an executive shuffle that saw the departure of two executives and the company naming new heads for Activision, Blizzard, and King.
As of 2017, Activision has employed 9,800 people.