Post-Microsoft acquisition layoffs at Activision Blizzard have already caught the attention of the FTC. We now know more about the subsidiary studios which will suffer the consequences. First of all reported speak Chronicle of San Francisco (via Eurogamer), California WARN notices list 86 planned layoffs coming to Skylanders manufacturer Toys for Bob and 76 haircuts Call of Duty: Vanguard developer Sledgehammer Games.
California requires companies to notify the state of upcoming layoffs, thanks to a 1988 law requiring 60 days' notice of layoffs (if they meet specific thresholds). The last WARNING Alerts for Activision Blizzard is reporting 86 discounts coming to an address in Novato, California – corresponding to the Toys for Bob offices – starting March 30. Chronicle of San Francisco reports a filing by the state of California indicating that Toys for Bob offices will close.
Toys for Bob is known for spearheading the concept of “toys for living”, which Nintendo later adopted with its Amiibos. Among the most successful projects of the Activision Blizzard subsidiary are the Spyro the Dragon series, Skylanders and Crash Bandicoot 4: It's about time. The player reported At the end of January, Toys for Bob would cut 40 percent of its staff, which would have amounted to only about 35 jobs.
Additionally, 76 other Activision Blizzard employees will lose their jobs (also on March 30) at an address in San Mateo, California, corresponding to the Sledgehammer Games headquarters. The studio has developed or contributed to several Call of Duty games, including CoD: Modern Warfare 3 (2011), CoD: Advanced Warfare (2014), CoD: World War II (2017) and CoD: Vanguard (2021). The studio was founded in 2009. Insider games reported in January, Sledgehammer Games would close its offices and go fully remote.
At the end of January, Microsoft announced that it cuts 1,900 jobs in its Xbox, Activision Blizzard and ZeniMax (Bethesda) teams. The Federal Trade Commission (FTC) filed a complaint with a federal appeals court on Wednesday, arguing that the large series of layoffs “contradicts Microsoft's statements in this proceeding.” The government agency called for a temporary pause in Microsoft's acquisition of Activision Blizzard, which appeared all but blocked after the UK's Competition and Markets Authority. approved the $69 billion purchase in October.
An estimated 10,500 gaming industry workers faced layoffs in 2023. We've already seen 6,000 more in 2024, just over a month into the new year. This is part of a devastating year of over wider layoffs in the tech industry.