SUMMARY
- Activision Blizzard seems to be in deep trouble after a $680 million on their name.
- This lawsuit comes a month after the massive layoffs at the company.
One of the most significant stories of 2023 in the gaming industry was Microsoft’s acquisition of Activision Blizzard. The deal was involved in a protracted legal battle that ended in October as Microsoft won it in court. With a staggering $68.7 billion deal, tech giant Microsoft now controls popular brands like Call of Duty and Warcraft, among others.
Things, however, took an ugly turn after Microsoft acquired Activision. Microsoft reportedly let go of 1,900 employees, mostly from Blizzard, and some from Xbox and ZeniMax, according to a January 2024 report.
🚨TALKING MAD SHIT JOIN UP🚨
🚨 Microsoft FIRES 2,000 Activision Employees https://t.co/1nEAiq9BcK via @YouTube— Fooly (@iFoolyy) January 26, 2024
Heavyweights like Mike Ybarra, the president of Blizzard since February 2022, and Allen Adham, the cofounder and chief creative officer, were among the many employees laid off by Activision. Additionally, Microsoft went on to axe Project Odyssey, an unnamed survival game developed by Blizzard.
Activision Blizzard may lose more employees
Unsettling news has just surfaced for Blizzard staff members, suggesting that the Microsoft owned gaming firm is considering about going through with another round of layoffs.
First reported by the Irish Examiner, this report states that Activision Blizzard has begun planning to let go of 136 workers at its Cork, Ireland location. This has come as a piece of shocking news as the company has been in Ireland for more than ten years, and at this location, it employs about 200 people.
📢 Calling all Game workers in any Microsoft employments in Ireland, especially Activision Blizzard.
In light of the latest round of layoffs GWUI is organising an online meeting today, 1pm to 2pm.
To attend the meeting, please register via this link https://t.co/R5xe538pVI pic.twitter.com/AZCsflvTmo
— Game Workers Unite Ireland (@GWU_Ireland) January 26, 2024
The company is also facing severe allegations on how it managed its previous layoffs. Mick Barry from the People Before Profit TD condemned Activision for not interacting with the trade union that the employees had selected. He also asserted that businesses shouldn’t be permitted to make such large layoffs without first consulting the representatives chosen by their given staff.
However, it is important to remember that Activision Blizzard has not yet issued a formal statement regarding the layoff reports. Although, if the reports of the layoffs turn out to be true, then the company will land in big trouble as it is already in the middle of a lawsuit for $680 million.
Activision Blizzard faces a lawsuit
According to recent developments, it has been reported that prominent OpTic Gaming members are suing Activision Blizzard for allegedly maintaining a strong monopoly and “stranglehold” over the Call of Duty eSports industry.
As of writing, Hector Rodriguez and Seth Abner of OpTic Gaming serve as the main plaintiffs in the lawsuit, which claimed to be seeking $680 million in damages from the company.
This lawsuit was filed because Activision has now moved away from the previous more open system and has started franchising the popular COD league and charges organizations an astounding $27.5 million to occupy one of the coveted places. Therefore, all the parties that have taken a hit by Activision’s harsh tactics in the COD eSports sector have now come together to fight it in court.