500 jobs go in Activision restructuring

Publisher will shell out up to $50m in severance costs to lost staff
Author:
Publish date:
Social count:
0
Publisher will shell out up to $50m in severance costs to lost staff
2_184_7111_184_6387_activision.jpg

Cutbacks at Activision will result in 500 jobs lost at the publisher.

The firm this evening confirmed a restructuring effort to focus on a reduced slate of titles going forward, including the death of the Guitar Hero franchise, some near-completed projects, and layoffs at (and potential closures of) key studios.

A refocused publisher means 'a related reduction in studio headcount and corporate overhead'.

"The plan will result in the separation of approximately 500 employees," a corporate filing by the publisher adds.

"The plan is expected to be implemented in the quarter ending March 31, 2011, resulting in a net pre-tax charge in the first two quarters of 2011, which is expected to total between $35 and $50 million, comprised of severance costs, the costs of other separation benefits and other exit costs.

"All of the above estimated charges are expected to result in future cash expenditures during 2011."

Related