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Post by Hemerage @ 02:04pm 01/03/12 | 42 Comments
Blizzard CEO Mike Morhaime has today released a statement over at the official Diablo III forums stating that Blizzard are in the "process of cutting a number of active positions, mostly non-development, throughout the company".

Kotaku, among others, are reporting 600 people have been sacked over what seems to be a redundancy to certain sectors of the business that are either not needed, or their time has come. It's not quite clear whether this recent shuffling has included some developers, though Mike Morhaime stresses that "our development teams in particular remain largely unaffected".
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.
With such a large company like Blizzard, sometimes certain areas can get a large build up, or require a certain amount of people within a period of time, and thus once a task is complete, are no longer needed.

It's not all bad news though, as Mike Morhaime goes on to suggest that a Diablo III release date will be announced in the following weeks. Also mentioned is as a private media event to showcase the latest work on Mists of Pandaria, the next World of Warcraft expansion.

You can read the full statement from Mike Morhaime, CEO of Blizzard over here on the official Diablo III forums. Leave us a comment below on your thoughts of this sad, but necessary step in a ever growing business.

Promoted/edited forum item



blizzarddiablo iiistarcraft iiworld of warcraftjob sackingredundancy





Latest Comments
arkter
Posted 02:05pm 01/3/12
WoW game masters probably...
glynd
Posted 02:09pm 01/3/12
out-sourcing customer service and the lack of blizzcon maybe?
Pinky
Posted 02:09pm 01/3/12
Ouch. That's a lot of jobs.
mission
Posted 02:17pm 01/3/12
That's a lot of injured/dead people too!
teq
Posted 02:19pm 01/3/12
thats pretty f*****g scummy of them, hire all the people, get them to do the work, fire them as they're about to release a product that will make them more money than they would ever need

the best thing that could happen here is people just refuse to work for Blizzard in the future
mission
Posted 02:24pm 01/3/12
^ I'd say most, if not all, where contractors.....
thermite
Posted 02:28pm 01/3/12
The best thing that could happen is if you d*******s stop buying their games.
greazy
Posted 02:32pm 01/3/12
thats pretty f*****g scummy of them, hire all the people, get them to do the work, fire them as they're about to release a product that will make them more money than they would ever need

the best thing that could happen here is people just refuse to work for Blizzard in the future

Haha. What? Yeah, good idea f*****, keep the people on even though there is no work for them.
teq
Posted 02:37pm 01/3/12
if they were contractors its fair enough, but firing 90% of your work force because you're "between games" is just a cost saving exercise at the expense of peoples lives
if they go and hire back all of these people over the next X months because they have some new game coming up that's a c*** act
Hogfather
Posted 02:37pm 01/3/12
Shrug. Don't see the issue, company restructured its workforce ... big f*****g deal? Happens everywhere in every industry. I can only assume that the individuals affected will be looked after as proscribed by their local labour laws and contracts.

Its just the way of things these days, nobody works anywhere for their whole life, and no job is ever safe. To think otherwise is a delusion.
Clubby
Posted 02:43pm 01/3/12
Ninety percent of the cut staff were in departments unrelated to game development, the company said.


Shrug ... too many companies stay bloated and waste money on jobs that aren't required -eg- gov departments ... cleaning house to keep the company financially stable and viable long term is a smart move although not everything will agree with such moves.
Zapo
Posted 02:43pm 01/3/12
Well this is the first major layoff since Activision / Blizzard Merger right? If so this isn't exactly surprising.
Outlaw
Posted 02:50pm 01/3/12
Blizzard AOE kills 600
Deviouz
Posted 03:03pm 01/3/12
Blizz employs over 4700 people, cutting 600 isnt 90% of the workforce, and they have stated less then 10% of cuts are from development
Khel
Posted 04:38pm 01/3/12
For all we know they could have some super secret project they've been working on for a few years and it didn't pan out, so now they've cancelled it and have an entire team with nothing to do.
Hogfather
Posted 04:45pm 01/3/12
For all we know they could have some super secret project they've been working on for a few years and it didn't pan out, so now they've cancelled it and have an entire team with nothing to do.

Except that 90% of them weren't on game dev?
Khel
Posted 04:49pm 01/3/12
Yeah, I probably should have read the OP first
Jim
Posted 05:02pm 01/3/12
maybe it wasn't a game, might've been a SPACECRAFT
m3nt4l
Posted 05:03pm 01/3/12
Maybe it was all concept artists and all future representations of game idea's will be shown with stick figures.
FraktuRe
Posted 05:04pm 01/3/12
In all likely hood they'll be support and QA people. So Acti (because it's not f*****g blizzard anymore, admit it) games will be buggier and their support will go down the toilet.
grug09
Posted 05:34pm 01/3/12
I imagine 90% of the redundancies were Game Master/Customer Service agents and or QA teams that are simply no longer required. No point keeping them on the payroll if the company can no longer justify their positions.

Why this is a news article (no offense, its on every major site) is beyond me. If it was development teams, sure, but its unspecified employees of a large company...

Telstra moved all its call center work offshore (thats how i lost my last job) and no one gives a s***, now a game company in the US sacks people and its come big scandal (the reply's not the new post).
Hogfather
Posted 05:45pm 01/3/12
maybe it wasn't a game, might've been a SPACECRAFT

Blizzard regrets to announce that it won't be launching Cold Fusion in 2012, company spokesman says "it'll be released when it's done".
Saint
Posted 05:53pm 01/3/12
Should've put them to work to try and make WoW stable so it doesn't need weekly restarts.
Eorl
Posted 06:17pm 01/3/12
I imagine 90% of the redundancies were Game Master/Customer Service agents and or QA teams that are simply no longer required. No point keeping them on the payroll if the company can no longer justify their positions.Why this is a news article (no offense, its on every major site) is beyond me. If it was development teams, sure, but its unspecified employees of a large company...Telstra moved all its call center work offshore (thats how i lost my last job) and no one gives a s***, now a game company in the US sacks people and its come big scandal (the reply's not the new post).

Uhhh, I think you'll find a lot of technology blogs/websites would have reported that Telstra moved their call centre offshore, and it's also pretty apparent. However, claiming this isn't "gaming" news is absurd. Of course it's news, it involves a gaming company, why else would it be on here? Even if they weren't specific game developers (which apparently there was a small percent) that's still people being fired from a game company.
Romper
Posted 06:51pm 01/3/12
I wonder what else Blizzard will be doing for the rest of 2012, no blizzcon, cutting jobs...I'm sure there will be further cost saving initiatives coming this year. I just wouldn't think Blizzard needed to take these steps.
Hemerage
Posted 07:08pm 01/3/12
My first news promote, after 15.5k posts. Ha!
newbit
Posted 07:08pm 01/3/12
I'll concede defeat here Eorl, i admit I'm simply a little frustrated at the fact that this has been the biggest topic of discussion on the D3 beta forums and the conspiracy theorists are having a field day. If i sounded callous towards those that have lost their jobs that isn't the case. My Telstra comment was both wrong and unjustified.
grug09
Posted 07:10pm 01/3/12
And it looks like my housemate left his new account logged in... (previous post from newbit)
skythra
Posted 07:35pm 01/3/12
Except that 90% of them weren't on game dev?

Still leaves 60 odd game developers using your statistics.
alandalf
Posted 07:49pm 01/3/12
This s*** for real?
Would of thought it easier to just release another SUPER SPECIAL EDITION f*****g unicorn mount or something and pay wages from the BAZILLION dollars it brings in.
-.-
kirkoswald
Posted 08:22pm 01/3/12
DEY TOOK ARRR JOBS!
Timmeh
Posted 08:35pm 01/3/12
gold farmers more likely
HeardY
Posted 08:36pm 01/3/12
What are they doing with their phat lewt from WoW?

10.2m subs (per wiki) as at Dec 11 @ $15 per month = in excess of $150m per MONTH!!

Server costs couldn't make up more then 10% (at best) of that cost...

and that's just revenue from ONE game.
skythra
Posted 08:50pm 01/3/12
15 per month is a s***load better than the 40-50 odd dollars that they get per game (or less after publishers and distributors and so on take their cut).
Tollaz0r!
Posted 09:11pm 01/3/12

Arg, if it was developers we would have several ex-blizzard indi devs springing up. That could potentially be epic.
Hogfather
Posted 09:46pm 01/3/12
Still leaves 60 odd game developers using your statistics.

They're not my statistics.
skythra
Posted 09:49pm 01/3/12
I assumed it was because that was the first time i saw a percentage. It didn't seem listed anywhere else.
Hogfather
Posted 09:52pm 01/3/12
90% was being thrown around at least 2-3 times before I used it.
Khel
Posted 10:34pm 01/3/12
This s*** for real?
Would of thought it easier to just release another SUPER SPECIAL EDITION f*****g unicorn mount or something and pay wages from the BAZILLION dollars it brings in.


Doesn't matter how much money they make though, no company is going to pay people it doesn't need to sit around and do nothing because there isn't enough work for them. Its not like its a government job or something.

After actually reading the stuff in the OP, it sounds to me like they were just trimming the fat and getting things in better shape, not that they had to do it cos they were running out of money. I can't imagine they would be struggling with all the phat lewts wow consistently brings in, on top of a new WoW expansion, new Starcraft 2 expansion, and Diablo 3 all launching this year.
Raider
Posted 11:05pm 01/3/12
prob QA / game masters.. all probably contracted..
Nitro
Posted 11:28pm 01/3/12
F*** we have some deads*** hippies on this forum...
qmass
Posted 02:25am 02/3/12
So Acti (because it's not f*****g blizzard anymore, admit it) games will be buggier and their support will go down the toilet.
If this was the case they wouldn't have been able to delay diablo 3 so many times - especially given how polished the beta seems.

you say some total bulls*** based on your gut sometimes often, fella.
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