Blizzard laying off 600 staff globally [Updated]

Mike Morhaime, CEO and cofounder of Blizzard, has the following to say:
Constant evaluation of teams and processes is necessary for the long-term health of any business. Over the last several years, we've grown our organization tremendously and made large investments in our infrastructure in order to better serve our global community. However, as Blizzard and the industry have evolved we've also had to make some difficult decisions in order to address the changing needs of our company.
Knowing that, it still does not make letting go of some of our team members any easier. We're grateful to have had the opportunity to work with the people impacted by today's announcement, we're proud of the contributions they made here at Blizzard, and we wish them well as they move forward.
Knowing that, it still does not make letting go of some of our team members any easier. We're grateful to have had the opportunity to work with the people impacted by today's announcement, we're proud of the contributions they made here at Blizzard, and we wish them well as they move forward.
It's certainly bad news for those impacted, and we here at WoW Insider hope that everyone is able to land on their feet.
According to the press release, current publishing schedules for their various games will not be affected.
Update 1:00 p.m. EST: Another statement from Mike Morhaime, after the break.
Everyone,
We announced today that we're in the process of cutting a number of active positions, mostly non-development, throughout the company. I'm sure this announcement has sparked some questions from all of you, so I want take this opportunity to address those as best I can. Over the past several years, the company has grown rapidly and evolved to better serve you and the rest of our global community. Thanks to all of your support, we continue to serve by far the biggest subscription-based MMO community, as well as the most passionate eSports and online gaming communities, in the world.
In order to keep making epic game content while serving players effectively, we have to be smart about how we manage our resources. This means we sometimes have to make difficult decisions about how to best maintain the health of the company. We're in the process of making some of those hard decisions now.
After evaluating our current organizational needs, we determined that while some areas of our business had been operating at the right levels and could benefit from further growth, other areas had become overstaffed. As a result, we need to scale down some of our departments and part with some of our colleagues and friends here at Blizzard. I know that you all understand how difficult this type of situation can be for anyone who might be affected, so I want to assure you that we'll be offering each impacted employee a severance package and other benefits.
I also want to emphasize that we remain committed to shipping multiple games this year, and that our development teams in particular remain largely unaffected by today's announcement. We're continuing to develop, iterate, and polish Blizzard DOTA, Diablo III, StarCraft II: Heart of the Swarm, World of Warcraft: Mists of Pandaria, as well as other, unannounced projects. We'll have exciting news to share in the coming weeks regarding Diablo III's release date, and will soon be holding a private media event to showcase the latest work on Mists of Pandaria. It goes without saying that we're working hard to get all of these games in your hands as soon as possible.
You've all come to expect Blizzard to live up to our mission statement with every game, and deliver the most epic entertainment experiences ever. You can continue to expect that and nothing less from us as we move forward.
-Mike Morhaime
We announced today that we're in the process of cutting a number of active positions, mostly non-development, throughout the company. I'm sure this announcement has sparked some questions from all of you, so I want take this opportunity to address those as best I can. Over the past several years, the company has grown rapidly and evolved to better serve you and the rest of our global community. Thanks to all of your support, we continue to serve by far the biggest subscription-based MMO community, as well as the most passionate eSports and online gaming communities, in the world.
In order to keep making epic game content while serving players effectively, we have to be smart about how we manage our resources. This means we sometimes have to make difficult decisions about how to best maintain the health of the company. We're in the process of making some of those hard decisions now.
After evaluating our current organizational needs, we determined that while some areas of our business had been operating at the right levels and could benefit from further growth, other areas had become overstaffed. As a result, we need to scale down some of our departments and part with some of our colleagues and friends here at Blizzard. I know that you all understand how difficult this type of situation can be for anyone who might be affected, so I want to assure you that we'll be offering each impacted employee a severance package and other benefits.
I also want to emphasize that we remain committed to shipping multiple games this year, and that our development teams in particular remain largely unaffected by today's announcement. We're continuing to develop, iterate, and polish Blizzard DOTA, Diablo III, StarCraft II: Heart of the Swarm, World of Warcraft: Mists of Pandaria, as well as other, unannounced projects. We'll have exciting news to share in the coming weeks regarding Diablo III's release date, and will soon be holding a private media event to showcase the latest work on Mists of Pandaria. It goes without saying that we're working hard to get all of these games in your hands as soon as possible.
You've all come to expect Blizzard to live up to our mission statement with every game, and deliver the most epic entertainment experiences ever. You can continue to expect that and nothing less from us as we move forward.
-Mike Morhaime
Filed under: News items






Reader Comments (Page 1 of 7)
Skyrei Feb 29th 2012 12:53PM
ITS THE END OF THE WORLD! (of warcraft)
raingod Feb 29th 2012 12:57PM
And I feel fine...
Adam Holisky Feb 29th 2012 12:57PM
Sorry, I'm pretty sure you're joking, but let me just get this right up there:
No. It's not. They even made it a point to say WoW's development team isn't part of this.
slim1256 Feb 29th 2012 1:06PM
Yeah - it sounds like they may have gotten bloated on the management and support front (always a constant threat with booming companies).
Typically, companies can do what they do with less people, and do it faster and more efficiently... if they identify the proper procedures and cut out sill policies and red tape.
/Industrial Engineer'd
Ruta Feb 29th 2012 1:07PM
@Adam: Yes, anyone with a bit of rationale understands that, but, now is the time to kick back, and let the doomsayers scream their tinfoil hat theories.
Noyou Feb 29th 2012 1:14PM
No, it's not the end of the world. It's not even the end of Warcraft. It's no joke though. 600 jobs is 600 jobs. They can spin it any way they want. Chances are, if they didn't lose almost 2m subs in the past 18 months or so, this wouldn't be happening.
@sky
Show some respect for the people that did lose their jobs.
Xeta Feb 29th 2012 1:29PM
@slim1256 - That seems to be the typical way of looking things in the corporate world, but I think just the opposite is true. Companies frequently decide they can do what they need to do with fewer people so they can squeeze out more profits, but that's often a mistake. The truth is, most corporations are trying to do too much with too few resources. Quality inevitably suffers. Well, that and the mental health of the employees who remain and are continuously pressured to work harder, faster and longer.
I'm not saying that's what's happening with Blizzard — I have no idea what their particular situation is — but this trend of corporate downsizing has not generally been a good thing for most of the people affected, including consumers.
Noyou Feb 29th 2012 1:34PM
"Mostly non-development" means some development too. We don't know exactly what happened to whom. Mass layoffs are mass layoffs. It was a big enough deal for them to put 2 blue posts about it. Like I said, it's not the end of anything, but it is concerning. And it's definitely concerning to those involved. Including the bosses that had to tell their coworkers the news.
mr.e81 Feb 29th 2012 1:38PM
Expect more trimming down. Blizzard is just synergizing with Activision.
dmberreth Feb 29th 2012 1:57PM
@Adam
The devs are fine.
This just affects all my friends here in Austin who work at the Blizzard call center.
Damn.
Scott Feb 29th 2012 2:16PM
600 people lose their jobs, monthly income, ability to pay bills, and overall life stability and the people here are mostly concerned about whether the game's release date will be pushed back.
Shameful.
Let's keep our eyes on the ball here, those 600 people could have been any one of us. "Mostly non-development" means support staff. I'd bet a lot of support staff began just like you and me: passionate about a game they were attached to. It isn't all just about "zomg where's mah game?!"
DarkWalker Feb 29th 2012 2:57PM
I expect this to mostly be:
- Redundancies with Activision.
- Support persons that became unnecessary with the 15% smaller WoW player base.
Shammwich Feb 29th 2012 3:09PM
Maybe I'm being naive here, but I honestly thought this would never happen at blizzard. I guess those lost subs are having an impact.
Meh Feb 29th 2012 3:14PM
Really not surprising considering the subscription numbers. Blizzard has lost at least 2 million subscribers, that is a lot less tech support needed.
Best wishes to those who lost their jobs.
John Patrick Feb 29th 2012 3:20PM
@dmberreth
Support staff truly are "the rest of us". Star Tek has a call center here in Decatur, IL (Star Tek) that just had a mass layoff of 350 people. They provided phone support for AT&T, Verizon and others. You're right - it is about the people, not about the game release timetable. Actually, I know Mr. Morhaime had to mention those things, as it was relevant to the business.
I think people should focus on what matters most ... so, Grab Your Sword and Fight the Horde!
robitrock Feb 29th 2012 3:31PM
They may have been unnecessary for years big company's often make cuts to there work force when they realize they have been paying them for nothing.
Doesn't mean its good that people lost there jobs, that still sucks. But this is nothing new tbh.
Also remember in November when we got those mass layoff rumors? This could very well be that cause these cuts were in there Q1 report.
http://wow.joystiq.com/2011/11/08/rumored-mass-layoffs-at-blizzard-never-happened/
Though the same thing happened in 2008 http://ocbiz.ocregister.com/2008/09/11/more-layoffs-at-blizzard-activision-but-none-affect-irvine-co/
In 2010 they reshuffled and laid off people as well.
srodrigueziii Feb 29th 2012 3:32PM
Here's hoping a lifetime subscription is part of the severance package. That would brighten my day a little, at least.
robitrock Feb 29th 2012 3:35PM
Eh they cut unnecessary people every year this really isn't anything new and they weren't only Blizzard employes Activision cut some to.
Though remember the mass layoff rumor in November? this is probably that.
These cuts were in the Q1 financial report.
robitrock Feb 29th 2012 3:37PM
double posts ftl
wutsconflag Feb 29th 2012 3:41PM
One thing Blizzard needs to do is cut GM staff. If you don't have to wait for a GM response, there's too many of them- oh, wait...
In any event, companies do this from time to time. CCP Games just did it, too. It sucks for the people who got let go, especially in this job climate, but it's (usually) better for the company overall (and that's what really matters, here, not whether or not Bob or Jane can feed their kids tonight).