Activision Blizzard assessed the possible consequences of massive cuts
The publisher, which laid off 800 employees last month, listed the risks in a document for the SEC.
In February, Activision Blizzard laid off 8% of its staff as part of a restructuring. The publisher expected financial and operational benefits from this decision, but now he has added it to the list of potential risks for his business.
Activision Blizzard outlined possible problems that may arise after the dismissal of 800 people in the SEC Filling 10-K document, which is being considered by the US Securities and Exchange Commission (SEC), PC Games Insider writes.
We may not realize the expected financial and operational benefits from the recently announced restructuring plan. Its implementation may negatively affect our business. In February 2019, we presented a restructuring plan. In accordance with it, we plan to redirect resources to achieve the largest goals and eliminate unnecessary, overlapping levels in some departments. Although we believe that this plan will allow us to provide more opportunities to our talented staff, as well as increase the competence and scale of our business units, achieving the desired and expected benefits in the desired and expected time depends on many estimates and assumptions. A number of factors can significantly affect the actual savings and the timing of its implementation: local labor standards, the results of negotiations with third parties and operational requirements. These estimates and assumptions are also subject to significant uncertainties (economic, competitive, etc.). Some of them we can't control. In addition, there is no guarantee that our business processes will be more efficient or effective than before the implementation of the plan, and that we will not eventually need an additional restructuring plan. Its implementation can be expensive and have a devastating impact on our business. Or entail other negative consequences, such as: depletion of the workforce, a drop in morale in the company, difficulties in attracting highly qualified personnel. Any of these factors can negatively affect our business.
We add that by the end of this year, Activision Blizzard will spend $150 million to compensate dismissed employees.
SEC Filing is an official document that public companies in the United States submit to the SEC for consideration. Starting from it, investors make a decision on financing companies.
Such documents include four sections, including the risk section. In it, the companies list all the potential risks that exist for it at the moment.
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