News Posts matching #Layoffs

Return to Keyword Browsing

Intel Winds Down Automotive Division, Prepares for Major Layoffs

Intel has confirmed plans to phase out its in-house automotive chip team and lay off most of the employees in that segment. In a memo to staff on Tuesday, the company stated that it will honor existing contracts with vehicle manufacturers and suppliers but will essentially dissolve the unit that designed and marketed its small automotive platform. This move supports Intel's new strategy under new CEO Lip-Bu Tan to concentrate on client computing and data center operations. "We are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers," the statement said. "As part of this work, we have decided to wind down the automotive business within our Client Computing Group. We are committed to ensuring a smooth transition for our customers."

Intel's automotive division has never generated a major share of revenue, and the company does not report its results separately. Still, Intel highlights that over 50 million vehicles worldwide use its processors for services such as infotainment, electric vehicle management, and driver assistance. Despite that footprint, the division remains small compared with the rest of Intel's diverse chip portfolio. Importantly, the decision does not affect Mobileye, which Intel spun off and took public in 2023. Mobileye continues to operate independently, even though Intel retains nearly all of the voting shares. Intel has already informed its manufacturing staff of plans to cut up to 20% of its workforce starting in July. It will also outsource much of its marketing function to Accenture, relying on AI to manage campaigns. These actions are much needed for Intel's determination to make operations leaner and sharpen its focus on the markets where it remains strongest.

New 'Substantial' Layoffs Incoming for Xbox Gaming Division

Microsoft appears to be planning a new round of layoffs, according to anonymous sources who spoke to Bloomberg. This time around, the layoffs appear to be targeting the Xbox gaming division, although the tech giant has yet to announce layoffs and declined to comment when Bloomberg reached out for confirmation.

Supposedly, the upcoming round of layoffs will affect workers across the entire Xbox group, as opposed to specific roles, departments, or subdivisions, and they will come alongside an internal reorganization at Microsoft. This news comes days after 1047 Studios, the developer behind Splitgate and Splitgate 2, announced a round of layoffs that affected an unknown number of staff, illustrating the continued strain on the gaming industry as a whole. It also follows the recent reveal of the ASUS ROG Xbox Ally. According to Gaming Layoffs, a site that tracks annual gaming layoffs, 2025 has seen an estimated 2,422 workers in the gaming industry be laid off in 2025 so far. Microsoft itself announced a round of layoffs in the Microsoft Gaming division in January this year. In response to the recent uptick in gaming layoffs, a new union has come about. The United Video Game Workers Union announced earlier this year that one of its main goals was to pressure companies in the gaming industry to put people over profits.

Splitgate 2 Developers Face Layoffs After Rocky Launch for Free-To-Play FPS

1047 Games, the developer behind Splitgate and the recently announced follow-up, Splitgate 2, has just announced a round of layoffs to an undisclosed number of "valued 1047 Games team members," according to an announcement on LinkedIn. The studio says that the decision was made at a time when the company is "redirecting resources to build the best game for our players." In addition to the job cuts, 1047 Games's co-founders, Ian Proulx and Nicholas Bagamian, are not receiving salaries at this time. The announcement claims that the studio is working on the next phase of Splitgate 2 and using community feedback to perfect the gameplay experience.

Adding insult to injury, the company's CEO was recently criticized online for wearing a hat that said "Make FPS Great Again" to the Summer Game Fest event shortly after releasing Splitgate 2, which faced a somewhat negative reception because of generic battle royale gameplay mechanics and aggressive monetization tactics. Currently, the game has a "Mixed" review rating on Steam just over a month after its initial launch into Early Access. According to an X post by Proulx, he was unaware of the game's aggressive monetization and $80 launch bundles, which were also part of the reason the game was heavily criticized at launch. The first Splitgate game also had a somewhat mixed response at its initial Beta launch in 2019, so it would not be surprising to see the game and developer bounce back from this hit, however, some of the original Splitgate community seems to have been burned by the rocky launch and CEO's recent statements.

Intel Prepares Marketing Layoffs, Accenture to Take Over Marketing Business

Intel is reportedly rethinking its marketing strategy as the business prepares for an overhaul. Intel's CEO, Lip-Bu Tan, is preparing to lay off Intel's marketing division and outsource the entire marketing effort to Accenture, a business consulting and professional services company. As one of the largest service companies, Accenture will utilize AI to extract information and design new marketing campaigns for Intel, thereby bypassing Intel's internal marketing department. As Oregon Live reports, the final decision will be made on July 11, when the marketing department employees will receive the final notification of their layoff.

This strategic restructuring is all part of an effort to better connect with customers, as Intel's previous marketing campaigns failed to do so. This has been evident in the company's recent trend of declining revenues and market share losses, as AMD and NVIDIA have managed to secure a significant share of revenues in both the data center and client spaces. Late last week, Accenture reported it is consolidating its services in Strategy, Consulting, Song, Technology, and Operations into a singular unit called Reinvention Services. "AI can help us analyze large amounts of information faster, automate routine tasks, personalize customer experiences, and make smarter business decisions," said management to Intel's marketing department, adding that "Our goal is to empower teams with more time to focus on strategic, creative and high-impact work by automating repetitive or time-consuming tasks." If the July 11 verdict comes as a green light for Accenture outsourcing, this Reinvention Services unit will be the new Intel marketing operator, alongside AI for some basic tasks.
Intel

People Can Fly Suspends Development of "Gemini" & "Bifrost" Projects

Today (June 1) we made a very difficult decision to suspend the development of project Gemini and project Bifrost—the relevant current reports have been released to the market. The suspension of the Gemini project is a consequence of the fact that the Publisher has not presented us with a draft of the subsequent content rider to the Publishing Agreement covering the terms and conditions of further milestones on project Gemini and the lack of communication from the Publisher as to its willingness to continue or terminate the Gemini project.

Project Bifrost was suspended due to the above and the analysis of the Group's cash flow, which showed a lack of prospects for securing organizational resources and funds necessary to continue the production and release of this project. As a result, we have to significantly regroup as a studio and scale down our teams, which hurts the most. We wish to express our deepest regret and sadness over how these events have unfolded and our sincere gratitude for everyone's contribution up to this point.
  • Sebastian Wojciechowski, CEO

EA "Reducing Roles" at Codemasters - Talent Being Redeployed Across Dev Studios

Not long after announcing an "end of the road" for World Rally Championship (WRC) franchise development, Electronic Arts (EA) reportedly implemented an unspecified number of layoffs at Codemasters. This long-running British racing game specialist became a fully EA-owned property just over five years ago. Since then, the studio continued work on the F1 franchise—in addition, teams also branched off into the making of well-known EA racing IPs: Grid and WRC. On forums and social media, (non-Codemasters) EA staffers indicated that colleagues had lost their jobs. Video Games Chronicle reached out to the publisher, for comment on last week's conditions. On April 29, the American video game company announced the cutting of hundreds of roles, and the cancelation of unannounced projects.

In a statement issued to VGC, an EA spokesperson explained: "as a business, we are constantly evolving to meet the growing needs of our players and driving greater focus across our portfolio. This has led us to look at reducing some roles, while we redeploy as many as possible against our strategic priorities." As reported earlier this year, the company tends to "reshuffle" its development staff following the completion of projects. It is not clear how much of the internal setup at Codemasters has been re-jigged, but an EA Racing franchise social media manager provided a little bit of insight. In a past weekend forum post, they posited that: "there's a lot of talent up for grabs now—the audio and vehicle art teams were some of the best in the business; and any game with cars in it should tap them up." Criterion could be an ideal location for transfers, but this Surrey, UK-based studio's focus has been redirected to non-racing IPs.

New Titanfall Game Axed by EA, Layoff Cuts Hundreds of Jobs

In the latest blow to the gaming industry, Respawn Entertainment, a subsidiary of EA, has officially announced the cancellation of two new games it had in the early stages of development. The official announcement does not specify what the cancelled games were, but previous reports from early this month indicated that Respawn had quietly canned a game in the Titanfall IP. It seems somewhat like this announcement from Respawn is simply confirmation of the cancellation that was previously already leaked. Along with the cancellation of the game, and likely more importantly, Bloomberg claims that the "targeted team adjustments" Respawn mentioned in the release would mean that as many as 100 employees on the Respawn team will be laid off.

As for the rest of the restructuring, Respawn says that it will be focusing its efforts on Apex Legends and Star Wars Jedi. Previous rumors claimed that Respawn was developing a mainline Titanfall 3 game, which will supposedly launch at the 2025 The Game Awards show, which is scheduled for December 11, 2025. It seems as though the Titanfall IP game that was cancelled as of this announcement was something of a spin-off extraction shooter set in the Titanfall universe. This news comes at a time when gaming industry lay-offs seem to be at a peek and shortly after the creation of the United Videogame Workers Union—a union aimed at protecting North American video game workers from exactly these sorts of unexpected layoffs that are seemingly aimed at reducing the workforce in the name of short-term profits.

Cyan Worlds Halves its Development Team, Securing Financing for Next Project

Cyan friends and family, we have some difficult news to share today. We would like to share with you some very unfortunate news. Despite our best efforts to avoid it, Cyan has made the difficult decision to reduce our overall staff size resulting in the layoff of twelve talented staff members, roughly half the team-effective at the end of March. Industry conditions have forced us into a tricky spot where we are having to weigh the future health of our studio against the month-to-month realities of game development in 2025.

Throughout the past year, we have been ultra-transparent with the entire Cyan team about the choppy waters we find ourselves in, as well as the dangers ahead. While the news of a layoff was not a surprise to the team, it was (and is) still deeply saddening for all of us. Although we have done our best to pad the landing for those affected with severance packages, we would implore any fellow developers looking for world-class talent to reach out. For now, our number one priority is to secure financing for our next project, and to restabilize the studio. We've been around for a very long time, and have been through tough times before. Our sincere hope is to continue to be around, and to provide the types of experiences that only Cyan can deliver.

As always, we are grateful for all the love and support from our amazing player community.
Sincerely, Cyan Leadership

Ubisoft Shuts Down XDefiant After F2P FPS's Disappointing Short Run

Ubisoft this week announced that XDefiant would be joining the recently axed Prince of Persia: The Lost Crown. As of December 3, the free-to-play first-person shooter will no longer be available to download, and no new players will be allowed to create an account. On June 3, 2025, XDefiant's servers will officially be shut down, making the game unplayable for old and new players alike. Along with the announcement of the closure, the development team behind XDefiant will also see significant changes, with 277 developers being laid off as a result of the shut-down, according to Stephen Totilo on BlueSky.

The remaining development team will be kept on to manage the game throughout its sunsetting until June 2025. It's not really a surprise that XDefiant is shutting down, despite the game's executive producer vehemently denying the allegations of the same as recently as October this year. While the exact reason for the game's closure wasn't revealed, news broke about XDefiant's struggles soon after its March 2024 launch, and it appears that the staunch competition in the space and the difficulties of monetizing a free-to-play game, even one that tries to break the mold, was just too much for XDefiant and its developer team.

Intel Won't Compete Against NVIDIA's High-End AI Dominance Soon, Starts Laying Off Over 2,200 Workers Across US

Intel's taking a different path with its Gaudi 3 accelerator chips. It's staying away from the high-demand market for training big AI models, which has made NVIDIA so successful. Instead, Intel wants to help businesses that need cheaper AI solutions to train and run smaller specific models and open-source options. At a recent event, Intel talked up Gaudi 3's "price performance advantage" over NVIDIA's H100 GPU for inference tasks. Intel says Gaudi 3 is faster and more cost-effective than the H100 when running Llama 3 and Llama 2 models of different sizes.

Intel also claims that Gaudi 3 is as power-efficient as the H100 for large language model (LLM) inference with small token outputs and does even better with larger outputs. The company even suggests Gaudi 3 beats NVIDIA's newer H200 in LLM inference throughput for large token outputs. However, Gaudi 3 doesn't match up to the H100 in overall floating-point operation throughput for 16-bit and 8-bit formats. For bfloat16 and 8-bit floating-point precision matrix math, Gaudi 3 hits 1,835 TFLOPS in each format, while the H100 reaches 1,979 TFLOPS for BF16 and 3,958 TFLOPS for FP8.

Troubled Bandai Namco Pressures 15% of Japanese Staff To Resign, Cancels at Least 3 Major Games

Despite the recent successful launch of Dragon Ball Sparking! Zero, which sold 3 million units in 24 hours, it looks as though Bandai Namco is pressuring 200 of its 1,300 employees in Japan to voluntarily resign in what is being called a short-sighted move to boost profits. According to a recent Bloomberg report, the Japanese game developer is skirting strict labor laws in Japan by removing all work responsibilities from 200 of its employees. Allegedly, nearly 100 of those staff being pressured into resignation have already left the company. Along with the layoffs, Bandai Namco has apparently cancelled three new games that were in development, namely, new Dragon Ball, One Piece, and Naruto games.

This shift at Bandai Namco comes in spite of a booming Japanese game industry, which will reportedly grow by 6.66% annually until 2029. Game Developer attributes Bandai Namco's coerced "voluntary" layoffs to the losses generated by the consistently underwhelming performance of the company's online division, which supposedly generated a net loss of an equivalent to $51.35 million in the last fiscal year. If our recent reporting is any indication, there seems to be a shift in the overall gaming market, in which younger audiences predominantly seem to prefer multiplayer (specifically PvP) games. Second to PvP is single-player gaming, which was consistently the preferred game type for more than 30% of gamers, regardless of age groups. This latter niche is seemingly where Bandai Namco's strengths and audience seem to lie, along with many of its other Japanese game studio competitors, like From Software, Nintendo, and Capcom.

Samsung to Cut Up to 30% of Global Staff in Some Departments, with Dell and Qualcomm Following the Trend

Samsung is implementing a major workforce realignment to improve operations and increase efficiency. According to a report from Reuters, Samsung has instructed its global subsidiaries to reduce marketing and sales staff by 15% and management personnel by 30% by the end of this year. Of its 267,800 employees worldwide, 147,000 are based overseas, and Samsung's global layoff plan is expected to impact all regions, including Europe, Asia, the Americas, and Africa. The exact motivation behind the layoffs is unclear; one source cites the slowdown in global demand for tech products as a factor, while another suggests Samsung is aiming to increase profits by cutting costs.

Dell is also implementing significant measures, with plans to lay off at least 12,500 employees, approximately 10% of its total workforce. Dell is striving to become "leaner" by overhauling its sales divisions and adopting paperless operations with the help of AI. Job cuts are expected to continue overseas, with U.S. staff members expecting their turn soon. Dell has declined to confirm any numbers regarding the layoffs, particularly those concerning their employees.

Intel Faces Shareholder Lawsuit Amid Financial Turmoil and Layoffs, Company Misled Investors

According to a recent report from Reuters, tech giant Intel is facing a significant legal challenge as shareholders file a lawsuit following a dramatic plunge in the company's stock price. The legal action comes from Intel's recent announcement of dividend suspensions and plans to lay off over 15,000 employees. The semiconductor behemoth saw its market value plummet by a staggering $32 billion in a single day, leaving investors reeling. The Construction Laborers Pension Trust of Greater St. Louis has initiated a proposed class action suit, naming Intel, CEO Pat Gelsinger, and CFO David Zinsner as defendants. The plaintiffs allege that the company made misleading statements about its business operations and manufacturing capabilities, artificially inflating its stock price between January 25 and August 1.

Intel's financial woes stem from underperforming contract foundry operations and 1% drop in revenue during the second quarter of 2024. While it may seem miniscule, declining revenue is paired with a negative 15.3% operating margin, resulting in a net loss of $1.61 billion. The company's August 1 announcement caught many shareholders off guard, prompting accusations of inadequate disclosure and transparency. This lawsuit is just one of several legal battles Intel is currently strangled in. The company is also locked in a patent dispute with R2 Semiconductor across multiple European countries, centering on voltage regulation technology. While Intel has secured a victory in the UK, it faces ongoing litigation in Germany, France, and Italy. Adding to Intel's troubles, a separate class action lawsuit is being explored on behalf of customers who purchased potentially faulty 13th and 14th-generation processors. The company also canceled its September 2024 Innovation event, citing poor financials, without any words on Arrow Lake or Lunar Lake. While the cancelation of events is sad, it is necessary to get financials back on track, and product launches should continue as usual.

SiFive to Lay Off Hundreds of Staff Amid Changing RISC-V Market Dynamics

SiFive is a team of one of the pioneering engineers that helped create RISC-V instruction set architecture (ISA) and helped the ecosystem grow. The company has been an active member of the RISC-V community and contributed its guidance on various RISC-V extensions. However, according to sources close to More Than Moore, the company is reportedly downsizing its team, and layoffs are imminent. The impact of the downsizing is about 20% of the workforce, which equals around 120-130 staff. However, that is only part of the story. SiFive is reportedly also canceling its pre-designed core portfolio and shifting focus on custom-design core IP that it would sell to customers. This is in line with the slowing demand for their pre-designed offerings and the growing demand for AI-enhanced custom silicon. The company issued a statement for Moore Than Moore.
SiFive PR for Moore Than MooreAs we adjust to the rapidly changing semiconductor end markets, SiFive is realigning across all of our teams and geographies to better take advantage of the opportunities ahead, reduce operational complexities and increase our ability to respond quickly to customer product requirements. Unfortunately, as a result some positions were eliminated last week. The employees are being offered severance and outplacement assistance. SiFive continues to be excited about the momentum and long-term outlook for our business and RISC-V.
Additionally, there was another statement for More Than Moore, which you can see entirely below.

"Project Sirius" Witcher Spin-Off Back on Track, CD Projekt Confirms Staff Layoffs at American and Polish Studios

CD Projekt declared in an investor regulatory announcement (issued on May 11) that its troubled "Project Sirius" multiplayer game was back on track with a renewed development focus. Their briefing is titled: "New framework for Project Sirius, decision concerning partial reversal of the impairment allowance for 2022, and write-off of part of the development expenditures incurred in Q1 2023." As reported back in March, the Polish gaming group made the difficult choice to reboot its multiplayer focused Witcher title and write-off a significant chunk of the development budget. Last week's update seems to indicate that their North American studio, The Molasses Flood, is still involved in the making of Project Sirius and that a smaller chunk of project expenditure has been written off in the mean time.

The company's investor announcement coincided with emerging rumors of employee layoffs - gaming news outlets started to pick up on social media declarations last Friday (May 12). Yesterday CD Projekt confirmed that the refocused and restarted development process has resulted in a round of headcount cuts on both sides of the Atlantic. In a statement issued to PC Gamer, a company spokesperson says: "Because the project changed, so has the composition of the team that's working on it - mainly on The Molasses Flood's side. The concrete number of employees we parted ways with is 21 team members in the US and 8 in Poland (working on the project outside of the US)."

Intel Cuts Budget for Client and Data Center Groups, Layoffs Imminent

Following the recent Q1 2023 financial report with declining revenue, Intel is restructuring its Client Computing Group (CCG) and Data Center Group (DCG). These two units were hit the hardest, with 38 and 39% downturns, respectively. According to Dylan Patel of SemiAnalysis, and a statement from Tom's Hardware, we have information that Intel will be conducting budget cuts to CCG and DCG, with some layoffs. As Dylan Patel notes, Intel will cut CCG and DCG budgets by 10%, resulting in as much as a 20% reduction of the workforce inside those two groups. Additionally, this was supported by Intel's spokesperson, who issued a statement for Tom's Hardware stating the following:
Intel SpokespersonIntel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.

We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.

Meta Layoff Phase Hits VR Studio Ready at Dawn, One Third of Staff Reportedly Released From Duty

Meta Platforms, Inc. (formerly known as Facebook) has begun implementing widespread staff layoffs across multiple company departments. The cutback operation was announced last month, with the social media giant targeting 10,000 positions (throughout 2023) in an effort to become more efficient. 13,000 staffers were released from their jobs last year, representing 13% of the workforce at the time - advertising revenues had declined in 2022 and Meta said that the change was required in order to navigate economic downturns. A repeat of that sentiment has been issued this year and two internal games development studios have been affected quite heavily by the latest layoff initiative, reports suggest. Ready at Dawn and Downpour Interactive are getting a lot of press coverage - due to former staffers divulging details of Meta's cutbacks via social media.

Thomas Griebel, a (now former) Senior engine programmer at Ready at Dawn, took to Twitter two days ago and made claim that: "One third of the studio was laid off today, including the studio head." He also observes that the studio has been shrinking over time: "Also lost some really great people just due to attrition. Think we're down almost (down to a) half since when I started in August (2022)." Former Ready at Dawn technical designer Colin McInerney has also released a string of information about co-workers being let go. Michael Tsarouhas (senior designer) and Daan van Zelst (level designer) have confirmed that they were released from their roles at Downpour Interactive.

Microsoft Eliminates AI Ethics and Society Team During Layoffs

During a round of layoffs totaling some 10,000 employees Microsoft has kicked one of its AI ethics teams to the curb. This development comes off the heels of high profile launches for generative AI systems, extended partnerships, and further integrations of AI services into Edge and Bing. The team was not large, having been cut down in size back in October during a reorganization, but still made an impact within Microsoft as a mediator for AI policy and implementations. While the larger Office of Responsible AI that dictates the rules of play for the use of AI within the company remains intact, sources from within stated that the ethics and society team played a more pivotal role in ensuring the rules were applied during design and development of products.

These events ring familiar tones to those which occurred at Google in 2020, when ethical AI researcher Timnit Gebru was removed after publishing a critical overview of the large language models now popular in products such as OpenAI's ChatGPT. This cascaded through the company as several other leading members left amidst the turmoil. These events marred Google's reputation and raised concerns over the company's credibility regarding responsible use of AI, and as we're still mentioning it have had lasting impacts on their brand.

Google to Lay Off Around 12,000 Staff to "Set up for the Future"

Google's chief executive officer (CEO) Sundar Pichai today uploaded a blog post titled "A difficult decision to set us up for the future." This message highlights the decision to lay off around 12,000 working staff from Google's fleet of employees. That includes the US and international teams represented in the figure mentioned above. While we don't have information about the specific headcount deficit per country, US employees are expected to be hit first and international employees second, as the company has to comply with local state laws in which it employs the staff. The figure represents about 6% of its total staff. Given the recent economic climate and a slight downturn in tech, Google is joining other big companies in cutting head counts to adapt to the new economy. Below you can read a piece of Google's announcement.
Sundar PichaiI have some difficult news to share. We've decided to reduce our workforce by approximately 12,000 roles. We've already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices. This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I'm deeply sorry for that. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.
The rest of the announcement can be read in the Google blog post.

GlobalFoundries Said to be Cutting 800 Jobs Despite Record Revenues in Q3

Despite reported record revenues of US$2.1 billion in the third quarter of this year, as well as a record net income of US$336 million, GlobalFoundries is said to be cutting its workforce by as many as 800 people. The job cuts are reported by VTDigger, a local newspaper in Vermont, where GlobalFoundries headquarters are located. According to the paper, GlobalFoundries are looking at cutting back on staff at all its global operations, but it's currently now known where the biggest cuts will take place. According to VTDigger, GlobalFoundries has around 14,000 employees globally, which makes the headcount cut around 5.7 percent of its workforce.

Based on comments by an anonymous employee, it was a small number of job cuts that were initially expected inside the GlobalFoundries. It's possible that contractors will be the ones being sacrificed in the first place, as the company has no less than 800 contractors just at its headquarters in Vermont, plus another 2,000 full time employees. GlobalFoundries has fabs in Vermont, New York, Singapore and Germany, but based on the comments by the employee, it's most likely that the major job cuts will take place in the US and Singapore, due to Germany's stricter employment laws. The job cuts are expected to start taking place this month.

Magic Leap Announces Layoffs & Abandons Consumer AR in Major Restructuring

Magic Leap the augmented-reality startup has raised over 2 billion dollars from investor such as Alphabet and Alibaba to develop AR products. In a recent blog post by CEO Rony Abovitz titled "Charting a New Course" he announces that the company has come under financial hardship due to the ongoing COVID-19 pandemic and will focus all of its resources on the enterprise market and the launch of Magic Leap 2. This restructuring will involve Magic Leap abandoning its consumer developments in the near-term and significant layoffs, Bloomberg reports layoffs may be 1000 which would result in the companies workforce halving.

Activision Blizzard Doubling Down on Diablo, Warcraft IPs Amidst Changing Market

The times have been rough for the Activision Blizzard juggernaut, as changing market conditions and lack of differentiated IP launches have led the company into a sort of stagnant position in the market - in both launches and revenue sources. The recent split from Destiny developer Bungie took out a bite from one of the company's additional streams of revenue amidst dwindling World of Warcraft subscriptions (after the usual spike post launch for Battle of Azeroth) and the lack of any new sources of income in the close future. This saw the company's stock valuation coming down, and was bookended by the recent layoff of some 8% total of the company's workforce (around 800 out of its 9,600 employees). Reports peg these as being mostly outside of the game development workforce, though, which could give traction to the report that the company is doubling down on IP-related development, instead of shying away from it - a sensible move, if you'll ask me.

Activision Blizzard COO Coddy Johnson reiterated Blizzard's fantastic IP reserves, and wants the company to achieve a higher cadence in content releases that follow the type of high-quality launches they achieve in their World of Warcraft expansions - but on other, more differentiated revenue sources. Johnson also reiterated more resources being put to work on the Diablo franchise, saying that "Diablo's development headcount will grow substantially", with "The teams are working on several projects for the franchise as well as the global launch of Diablo Immortal."

Telltale Games Restructuring, Letting go of 90 Staff Members

Telltale Games, best known for its episodic series of videogames focused on single-player experiences, has announced a restructuring within its organization. The move, which aims to "make the company more competitive as a developer and publisher of groundbreaking story-driven gaming experiences with an emphasis on high quality in the years ahead," will see the laying off of 90 staff members (around 25% of its workforce,) effective immediately. Luckily for us gamers, it appears that the restructuring won't affect any previously announced projects, which include a second season for breakout game The Wolf Among Us.

"Our industry has shifted in tremendous ways over the past few years. The realities of the environment we face moving forward demand we evolve, as well, reorienting our organization with a focus on delivering fewer, better games with a smaller team," said Telltale Games CEO Pete Hawley. "I'd like to express our respect for all the contributions that these incredibly talented artists, storytellers and more have made to this company, and that this decision is in no way a reflection on the quality or dedication of their work, " he added. "We have made available our full career assistance services to help our affected colleagues and friends - and their families - navigate this difficult transition as quickly as possible."
Return to Keyword Browsing
Jul 3rd, 2025 21:30 CDT change timezone

New Forum Posts

Popular Reviews

TPU on YouTube

Controversial News Posts