Activision Blizzard Esports Layoffs Shake Industry

In a move that has shaken the esports community, industry giant Activision Blizzard has dramatically reduced the size of its esports workforce. The timing of these layoffs is notable, coming just one day after the close of the Call of Duty League's Major I tournament, suggesting a recalibration of the company's esports strategy.

In the wake of the layoffs, only about 12 individuals reportedly remain on the Activision Blizzard esports team. This significant downsizing points to a company in the midst of re-evaluation and change, particularly regarding its competitive gaming endeavors.

The Call of Duty League has experienced a series of recent challenges and setbacks, including event delays, that have no doubt contributed to the company's reassessment. Furthermore, this isn't the first instance of Activision Blizzard slimming its esports workforce; last year saw approximately 50 employees dismissed, impacting both the Overwatch League and the Call of Duty League heavily.

The Impact on Overwatch and Call of Duty Esports

The effects of last year's redundancies were profound, leading to the dismantlement of the Overwatch League's infrastructure and the formation of a new esports environment to continue competitive play. With the current situation miring the Call of Duty League, industry insiders and fans alike are brimming with speculation about potential forthcoming changes to the Call of Duty esports framework. And while changes are a constant in the ever-evolving esports landscape, the degree to which Activision Blizzard has trimmed its esports division suggests a fundamental shift in direction.

In parallel, long-standing fans of Call of Duty have voiced their concerns and criticisms over the League's franchise structure. The distinct departure from the grassroots origins of Call of Duty esports to a more corporatized model has not sat well with much of the community, creating an aura of discord around the events.

Industry-wide Implications

These layoffs extend beyond the confines of the esports team at Activision Blizzard. Sledgehammer Games, another developer involved in the Call of Duty franchise, has recently dismissed 30% of its staff. While no direct correlation has been confirmed, it is difficult to see these layoffs in isolation, especially in the context of Microsoft's restructuring following its acquisition deals—deals that have included the procurement of Activision Blizzard itself.

The transition of the Call of Duty League's broadcasting rights from Twitch to YouTube also played a significant role in the current state of affairs. The exclusive deal made between Activision Blizzard and Google for streaming on YouTube met resistance from fans who were accustomed to watching on Twitch. This resulted in a viewership decline, posing significant challenges for both the League and YouTube in terms of maintaining and growing their audience.

Despite these hurdles, the CDL is pushing forward, with efforts to tap into new audiences while keeping their loyal base engaged via the YouTube platform. The next event scheduled for February 16 is expected to move ahead as planned, and the season will continue despite the turmoil off the playing fields.

Looking to the Future

Looking beyond the current season, there is much speculation about how the Call of Duty League will evolve and if further changes will be enacted—will there be a shift back towards the league’s roots, or will Activision Blizzard steer the CDL towards a new, uncertain future?

Industry Voices

The impact of these layoffs on the quality and execution of Call of Duty esports events is not negligible. As noted by industry professional Josh Lee, "There are no longer any more full-time observers for the CoD League; as the remainder of Hot Hands Lounge was let go after the conclusion of the Boston Major. All of those years of work and development the team put in has just been wiped. CoD esports will never be the same again." This sentiment captures the general dismay within the community and underscores the depth of talent and experience that has been lost.

The tides of change are inevitable in any industry, but for Activision Blizzard's esports team, the sweeping nature of these layoffs suggests a fundamental shift is on the horizon. How this will shape the Call of Duty League and esports as a whole remains to be seen.