Activision-Blizzard warns investors that job cuts could hurt its business

Activision-Blizzard’s recent decision to lay off 8% of its workforce may have negative consequences on the company’s revenues, according to its annual 10-K filing with the US Securities and Exchange Commission. In a section covering risk factors, Activision says the restructuring the company announced in February that eliminated about 800 jobs may prove costly for the company. “While we believe this restructuring plan will enable us to provide better opportunities for talent, and greater expertise and scale on behalf of our business units, our ability to achieve the desired and anticipated benefits from the restructuring plan within our desired and expected timeframe is subject to many estimates and assumptions, and the actual savings and timing for those savings may vary materially based on factors such as local labor regulations, negotiations with third parties, and operational requirements,” the report says. The report goes on to say that beyond unplanned costs caused by the layoffs, there may also be knock-on effects such as decreased employee morale and productivity, and difficulty hiring and retaining highly-skilled employees.