Activision Division Cuts Jobs After Parent Company Activision Blizzard Sets New Earnings Record

Activision Publishing, the division of Activision Blizzard that publishes Call of Duty and Destiny, has enacted a round of layoffs. A statement provided to GameSpot explains that the job losses are the result of Activision "realigning [its] resources to support [its] upcoming slate." The move is also being done in response to the "accelerating transition to digital, including opportunity for digital add-on content."

Kotaku, which first reported the news today, says the layoffs affected internal studios such as Infinity Ward and Beenox, as well as Activision's headquarters in Santa Monica.

In all, the job losses at Activision Publishing reportedly amounted to 5 percent of its total workforce. Blizzard Entertainment, the division that develops and publishes games like Overwatch, World of Warcraft, Diablo, and Starcraft, was apparently unaffected.

Kotaku reported that 20 people lost their jobs at Infinity Ward, which made 2016's Call of Duty: Infinite Warfare. During an earnings call yesterday, Activision management explained that the game failed to meet expectations in part because the space setting did not resonate with some players.

The job losses at Activision Publishing follow yesterday's positive earnings report from Activision Blizzard. The company reported record full-year revenue of $6.61 billion, up 42 percent compared to $4.66 billion during the year prior. Activision Blizzard revenue from in-game content amounted to $3.6 billion during 2016; that's more than double what it made in 2015 ($1.6 billion).

Activision Publishing's lineup for 2017 is small compared to past years in terms of the number of games. Right now, the company's only confirmed games are Destiny 2 and a new Call of Duty game that goes back to the franchise's roots. For the first time in years, Activision will not release a new Skylanders game for consoles in 2017.