Blizzard laying off 600 staff globally [Updated]
by Adam Holisky 
Feb 29th 2012 at 12:47PM
Mike Morhaime, CEO and cofounder of Blizzard, has the following to say:
Mike Morhaime
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.
Mike Morhaime
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 7 of 7)
beck84720 Feb 29th 2012 8:44PM
Honestly it's probably most of the Starcraft people.
maudinseru Feb 29th 2012 7:04PM
@Xeta
There is a requirement called a "WARN Notice" requiring notice for companies over a certain size. I direct you to the Department of Labor's website.
http://www.doleta.gov/programs/factsht/warn.htm
Flarebear Mar 1st 2012 12:17AM
My father's been laid off by 4 different companies in the last few years. As he is my family's primary breadwinner, I know that being laid off is no fun for either the family or the former employee. My father was upset for weeks afterwards, and we had to severely tighten our belts for a few months while he worked temp jobs until he could get a new one. It's extremely stressful, and I feel for anyone in the same boat.
I hope that all of these employees will be able to get jobs ASAP. I'm just glad they got a severance package - there's been times where my father's employers just went under and he didn't get a single cent afterwards. Hopefully the package will keep them afloat until they find a steady job.
My prayers for all of the employees.
Halimain Mar 1st 2012 1:53AM
Lately, either through my own grumpiness, or through pure idiocy on their part, I've had to file complaints on three different GMs. I do hope this set of layoffs will help weed out GMs like this, and get blizzard to the standard of quality I actually am willing to pay to experience, like in the ambiguous good old days.
Sarabande Mar 1st 2012 3:45AM
This is very sad. I feel for the people let go. Severance pay only goes so far, and the worry and stress of getting laid off can take a toll on health, on relationships and everything else in life. Without a job a lot of people (if they are in this country) may have a more difficult time getting medical treatment for any problems they may have. (Even if they were well paid, medical expenses are VERY high). Also, it's difficult for people in the same office or department left behind, having to do the work of more than one person. I know it's not the end of the world but when it's something you haven't heard about happening to this particular company (though it's happened in waaaay too many companies) it does make you worry - not about the games in particular but about the economy and about industry in general.
I know Morhaime HAD to word things the way he did, but personally, I get sick of hearing the same corporate "reduction spiel" - maybe because I hear it over and over and over nowadays. To a point, I'm sure it was difficult, but much less difficult for the company than the people let go. And no matter what they say, how they word it, it does make you question the health of the company (as so many companies RESTRUCTURE or whatever, to move forward). It generally doesn't mean they're doing better. In this case, we know about the lost subs so it's fairly clear. Maybe it's the corporate-ness of the message, the fact that (probably necessarily) it is so . . . impersonal, that makes me want to vomit a bit. Maybe for once, I want to hear, "I sure the hell didn't want to do this but our stockholders had us by the balls. They were pissed and worried about the reduced sub, as stockholders have a tendency to panic, you know. Fred, you were great with customer supports. I heard about you. Mary, you've always been the one to make people laugh in your office, all the while doing a tremendous job. I know everyone will miss you. Jason, you worked so hard. I know you put in the extra hours anytime they needed someone, even missing your little girl's recital . . . . ." I realize you can't write a personal message for 600 people, but SOMETHING besides the usual corporate BS. Maybe it's just that I love this company, their product, etc., that I for some reason, think they'll do things differently from the thousands of other companies out there. I know it's me being unrealistic, but I keep hoping. :P
I wish everyone the best of luck and hope that having "Blizzard" on your resume will help in finding a fantastic job in the very near future. :)
Bossy Mar 1st 2012 4:45AM
Economic recession. Future European depression.
Enjoy the good times while they last.
The first Blizzard hater spawning yet another "I hate WOW because..." is guilty as charged.
If its all up to these hater guys, we will never have a world like Azeroth again.
Think about it when you watch your 2 minute long loading graphics screens...in the idiotic copycats.
Warcrafter Mar 1st 2012 6:17AM
Yesterday with a heavy heart was I was one of 600 people affected by the current employee changes going on within Blizzard Entertainment. While these kinds of occurrences are never easy for anyone involved in having to make or be affected by such difficult decisions, I'd like to thank all of you who are supporting us from the bottom of my heart. Working for Blizzard Entertainment was a rare opportunity and indeed a mark of honor I wear proudly as a gamer and professional. I was, and will always be, your Game Master.
Tri Mar 1st 2012 9:16AM
Sorry to hear :(
Hilus Mar 1st 2012 12:54PM
Courage!
yagunoi Mar 1st 2012 9:38AM
It's always sad to hear of lay offs anywhere. I'm sure most of these people will be successful at finding steady employment elsewhere in the gaming industry. Having Blizzard on your resume isn't too shabby.
I'm assuming, like many others, this is also from expanding so rapidly and hiring so rapidly to deal with that expansion. And obviously as numbers tend to shift downward and more positions become automated, it's natural to reevaluate your business structure and act accordingly.
As far as the shareholders aspect of this goes. It's a shame how that whole aspect of things work. But I think Boobah nailed it pretty well (and educated me some, too!).
And while I assume this has nothing to do with it, my dislike for Activision makes me wonder if they had any hand in this. Between them and EA, I don't know which I dislike more.
Dave Mar 1st 2012 10:54AM
Diablo III will never be released.
DC Mar 1st 2012 1:12PM
I work for a global insurance company, and this sort of thing happens constantly. For example, the success of one of our newer online processes has basically rendered 350 employees nearly useless in less than a year. They went from taking 60-70 phone calls each per day, to less than 5 per day...and rather quickly. Some of the staff was absorbed by other departments, some quit, and some were let go.
This is really just business as usual.
Andeh Mar 1st 2012 3:42PM
Just when I thought Kotick couldn't get worse he comes back stronger than ever, the man is like thrush I swear.
mjolinor Mar 3rd 2012 6:05AM
It's called downsizing. When a companies profits peak they looks at reducing costs to increase said profits. Clearly millions of dollars a month isn't enough for shareholders, hence the job cuts. Mike Morhaime can paint it anyway he likes, Blizzard sold their soul to the beast a long time ago. I seriously hope they start laying off some developers and writers, the current batch are terrible... lol, Neptulon. I'm enjoying watching this game die a slow death.
storyteller Mar 6th 2012 7:59PM
This is what happens when rich people worry about their wealth. Some of those 600 people will get lucky and find something soon, but for the rest...pain.
Corporate America is its own end. The true value of life is measured only by the GDP.
The wealthy enjoy these times...and the pain they cause.
You have to accept that the wealthy own the rest of us. We are bound with no real hope of escape. Even though you want to be your own person, you can't.
You have accepted what little crumbs the kings have offered you and your tears of appreciation fill their cups. It brings laughter to their darkened souls.
...but their days are short, and their wealth only temporary. The tattered rags of who they are will soon be revealed.
Set your foot to the earth and choose your path...lest the rich man choose it for you.