Activision Informs Investors That Layoffs Might "Negatively Impact Our Business"

It's no secret that Activision Blizzard has been under fire recently after laying off more than 800 of its employees, but now it appears that the company is warning its investors that the move to cut roughly 8% of its staff may "negatively impact" their business.

A new header has been placed in the SEC Filing under the "Risk Factors" section. "We may not realize the expected financial and operational benefits of our recently announced restructuring plan, and its implementation may negatively impact our business," the warning reads.

"Further, there can be no assurance that our business will be more efficient or effective than prior to implementation of the plan, or that additional restructuring plans will not be required or implemented in the future," the statement continues. "The implementation of this restructuring plan may also be costly and disruptive to our business or have other negative consequences, such as attrition beyond our planned reduction in workforce or negative impacts on employee morale and productivity, or on our ability to attract and retain highly skilled employees. Any of these consequences could negatively impact our business."

For those unaware, Activision Blizzard reported record earnings for 2018 last month, and then let go over 800 of their employees who helped them achieve that. "Currently staffing levels on some teams are out of proportion with our current release slate," Blizzard president J. Allen Brack stated.

"This means we need to scale down some areas of our organization," they continued. "I'm sorry to share that we will be parting ways with some of our colleagues in the U.S. today. In our regional offices, we anticipate similar evaluations, subject to local requirements."

They noted that the layoffs were targeted towards mainly administrative positions to clear way for more "meaningful developmental roles," Activision said. I guess only time will tell how negatively the move does impact their business.

What do you think about this? Do you believe the investors were well aware of the negative impact laying off over 800 employees would have on the business? Sound off in the comment section below, or hit me up over on Twitter @anarkE7!

Thanks, GameSpot!

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