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 2 of 7)
Leland Ford Feb 29th 2012 4:00PM
Outsourcing customer support to some third-world country more than likely.
Cephas Feb 29th 2012 6:47PM
@DarkWalker
"Redundancies with Activision."
Seriously? Because of the merger that happened three and a half years ago? Fat chance.
mibu.work1 Feb 29th 2012 8:21PM
I've kinda been expecting this since the Activision acquisition, but it's still sad to hear. I hope those folks who lost their jobs can get back on their feet, and I'd honestly kinda like to know what this severence package entailed, even if it's just "X months of pay without work-time, and a positive recommendation on your next job application". I know Blizzard is humane enough to not toss out their lay-offs in the cold with nothing, but it'd be nice to hear what, exactly, they got.
DBriggs304 Mar 1st 2012 5:22AM
@Scott
The only comment that makes sense at all here. Those 600 people are more important than this game (which is in no real threat of closing). The majority of comments are about the fate of this game rather than the livelihood of these people who are most likely terrified and worried about what happens to them and their families.
Greg Mar 1st 2012 11:58AM
Could any of these 600 people be used to monitor various realms' trade chat to kill gold spamming accounts.
I know it may not be the best bang for the buck, but it would sure make the player base happy if Blizzard took a public step toward saving peoples' employment and reducing the number of in-game nuisances.
Skyrei Mar 1st 2012 11:05AM
Folks, I was not serious.
Izzy Mar 2nd 2012 9:34AM
@slim & Xeta, you are both right. A smart executive team has to run things lean and do a SWOT analysis every now and then to see where processes can get cleaned up (by adding or removing staff if called for). I'm sure they still had plenty of redundancy from the Activision merger even though that was years ago. My best to the laid off folks, I'm sure they will succeed with Bliz on their resume.
dodio359 Feb 29th 2012 12:57PM
"A good purge is good for the soul" -Stalin
Shinae Feb 29th 2012 1:22PM
*shudders*
Alysandir Feb 29th 2012 1:27PM
I know *I* feel better after a big bowl of Cracklin' Oat Bran has made it's way through my system. It's a life-changing experience.
Wait...what were we talking about again?
Sqtsquish Feb 29th 2012 1:27PM
makes me wanna lay a doo hearing your words
mr.e81 Feb 29th 2012 2:20PM
Did Stalin have IBS?
slim1256 Feb 29th 2012 12:59PM
Grammar police! The last word in the last sentence should be "affected." (And now everyone knows my shameful secret... that I'm one of "those" people, that constantly nitpicks people on their spelling/punctuation/grammar).
This sucks, but it's not terribly surprising. Hope the folks impacted by this manage to land with their feet on the ground.
Ez Feb 29th 2012 12:59PM
WoW
Klausse Feb 29th 2012 1:02PM
They finally upgraded the servers, so all those poor gerbils and hamsters are no longer needed. ;)
emberdione Feb 29th 2012 1:03PM
What shocks me is that 90% of that is not from dev teams. Which means about 60 people were from dev teams (not at all a large number considering the size of the studio) but where did the other 540 people come from?!?
Michael Sacco Feb 29th 2012 1:12PM
Support.
Ailuvan Feb 29th 2012 1:29PM
Support, marketing, management, HR, sales, administrative support, facilities management, operations, IT...
A company the size of Blizzard has lots of employees that don't write code.
emberdione Feb 29th 2012 1:35PM
I guess I would have pegged their support section at being way smaller than that to soak up 500+ layoffs and still be functional. If Diablo 3 is through most of its testing then some of this could come from testers, since they have their own and don't use Activision's...
emberdione Feb 29th 2012 1:40PM
@Ailuvan I am aware. I work for Activision after all. But even so, that's a crap ton of people that at some point were considered needed and now are no longer needed. Plus this is from Blizzard, not Activision, so it's not like Activision closed a studio or something.
Mike is probably right and a large number of them came from support, or possibly D3 QA.
I guess too, they could have just had a build up. Most companies do this about every 2-3 years. As far as I have been in the industry, I don't recall Blizzard doing this, so they were due. It's also possible alot of these were testers and such for localization that is now done.