Activision Blizzard Esports will announce a restructuring that will result in layoffs of approximately 50 people, according to a report by the Sports Business Journal. In an interview with Sports Business Journal, Activision Blizzard President of Sports & Entertainment, Tony Petitti, explained that these were steps necessary for ABE to "re-invent itself amid the coronavirus pandemic."
This will start to take place Tuesday as Activision will start to inform those who have lost their jobs and explained they would be receiving proper severance packages.
Activision Blizzard Esports to Reportedly Layoff Near 50 Employees in Restructuring Move
While some specifics were not divulged to the public quite yet, Petitti noted the Overwatch League and Call of Duty League would be hit the most as the company plans to shift their plans for the future. There will reportedly be less dependency on live events and while the company held onto the majority of the staff through 2020, the company is now looking to make some changes.
While it might be seen as a simple reaction to the ongoing COVID-19 pandemic, Petitti explained in the report that this internal discussion began right when he was hired.
"Petitti indicated that CDL, which has already started its 2021 season, has seen some growth from last season in key performance indicators, and the company wants to spend more on areas where it feels it can drive higher engagement, viewership and returns. He remains bullish on seeing growth for both CDL and OWL, the latter of which starts its 2021 season next month but has had a harder time gaining a foothold in North America," Adam Stern said in the SBJ report.