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 5 of 7)
Xeta Feb 29th 2012 2:15PM
Yep. I've been in the same boat, Caz. And unfortunately, because the obligation of a publicly held company is not just to make profits, but to continuously make larger profits for their stockholders (which is not really sustainable indefinitely), the situation just keeps getting worse.
Lipstick Feb 29th 2012 2:38PM
Agree 100%.
Silversol Feb 29th 2012 11:31PM
I read it as "corporate Fiance job" ... it made me giggle for a second.
Nina Katarina Feb 29th 2012 1:38PM
People I really hope didn't lose their jobs:
That nice GM who helped me when I won an LFR loot drop but it didn’t appear in my bags.
Whoever designed the quest “Gnomeageddon”
Whoever did the concept art that they showed at Blizzcon for Mists of Pandaria
Whoever did the background music for Tier 11
Whoever writes Jadaar and Asric dialogue
Whoever wrote the Welcome To The Machine questline family
Whoever designed Tier 13 pally armor
Please chime in with your favorite anonymous Blizzard employees.
Tri Feb 29th 2012 1:40PM
I'd say ANY of their soundtrack guys.
Big fan of the WoW music here..
Sansarya Feb 29th 2012 2:01PM
Kat Hunter, Blizzcon host. Always good to see girl gamers on television. I hope she's still there.
Domintal Feb 29th 2012 2:18PM
Greg Street.
I'm serious, he does more for this game then most game developers do. He devotes his life to making sure the game is as balanced as possible, and I am damn sure he does a good job at it. Without him this game wouldn't be near the balance it is now.
bethontheharbor Feb 29th 2012 3:16PM
The GM who recovered my highjacked account in my second week of play.
The GM who gave me a free guild rename (before it cost).
Whoever made the final deciding vote not to implement real ID names on the forums.
Khirsah Feb 29th 2012 7:47PM
That GM that restored an ICC drop at the end of Wrath that I accidentally de'd.
That CR rep that helped me get playing again within minutes after I reset my phone to factory settings, but forgot to uninstall my mobile authenticator first.
Any of the guys and gals that have made the rogue so much fun, and kept us relatively balanced without having to ride the buff/nerf roller-coaster as much as some other classes.
Tri Feb 29th 2012 1:39PM
I feel sorry for the 600 people losing their jobs - having an unemployed husband myself - I really do.
But did Mike just say they're announcing the release date for D3 in the next couple of weeks? :O
Artificial Feb 29th 2012 1:45PM
I would be curious to know the breakdown of the jobs involved. For a company that used to ship so much product, now that the world is moving to digital distribution, there's bound to be a lot of people who used to do stuff the company just doesn't need done anymore...
mastersnick Feb 29th 2012 1:54PM
Its sad for the people affected by this. Thats for sure, was it completely unexpected that not.
The game lost close to 2 million subs. Because of presure from investors they probably where orderd to resort and clean up where they could, resulting in this.
dmberreth Feb 29th 2012 2:00PM
I would also like to add that, for the average call center employee, this was completely unexpected. And also it is very terrible of Blizzard to release this news online before telling the employees.
I know for a fact that the staff in Texas was called in for a meeting today - and that meeting doesn't even take place for another two hours. They had no idea what it was about.
They do now. Bad form, Blizzard.
raingod Feb 29th 2012 2:24PM
This is filled with so much idiocy and supposition, I don't even know where to begin.
AltairAntares Feb 29th 2012 3:39PM
How many more assumptions can you make about something you don't know anything about?
pattycakes Feb 29th 2012 2:04PM
As someone who was laid off a few years ago by a large corporation, I feel for these folks.
It's quite mind-blowing when you are told, "you've been doing a great job, and you have great skills, but we have to let you go". I sat there in shock. I was laid off (fired) for doing my job? And then I was told that I had to spend the next two days summarizing everything I was working on, and hand it off to a co-worker?
It's a difficult world we live in, and I hope that all those affected are able to find other positions soon.
Devin Feb 29th 2012 2:15PM
This was exactly my thoughts as well, and I don't understand why your comment got a low rating. To put it into perspective, let's say the average salary for the 600 employees was $50,000 a year. 50,000 x 600 = $30,000,000 a year that Blizz is paying for them. It was reported that over the past year they lost around 2 million subscriptions. So let's take 2 million and multiply it by $13.99 a month (since a subscription can range between 12.99 and 14.99) and we get $27,980,000. They can spin it anyway they want, but they are just making up money for lost subscriptions and doing so on the backs of their employees so that they can save face with investors. I bet Mike Morhaime will be taking home a nice bonus this year as well.
naixdra Feb 29th 2012 2:15PM
I hope those people are able to find employment soon, hell I hope everyone unemployed can find employment soon. Sadly though, these things happen. Companies will do what they can to maximize profits. It's their job to do so.
Welcome to economics.
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However, Blizz is giving severance pay and that is much better than what many will give.
Blayze Feb 29th 2012 2:20PM
Damn.
Matthew Feb 29th 2012 2:21PM
I can understand when companies doing poorly lay off people. But Blizzard has a good profit margin. Does it have to be that much better? I'm sad that they are doing this.
I buy stuff from the Blizzard Store, etc., and contribute to their profits in ways beyond the subscription.
I might withhold some of these purchases as a protest.