The FTC has previously taken notice of Microsoft‘s Activision Blizzard layoffs following their acquisition. We now have further information about which subsidiary studios will be affected. California WARN warnings identify 86 impending scheduled layoffs at Skylanders producer Toys for Bob and 76 cuts at Call of Duty: Vanguard developer Sledgehammer Games. The notices were first published by the San Francisco Chronicle (via Eurogamer).
California has a statute from 1988 requiring 60 days’ notice of staffing losses (if they reach certain thresholds) and hence forces businesses to notify the state of impending layoffs. The most recent Activision Blizzard WARN notifications list 86 impending layoffs at a Novato, California address, which correspond to Toys for Bob’s offices, starting on March 30. The San Francisco Chronicle also notes that Toys for Bob’s offices would close, according to a California state filing.
Toys for Bob is known for spearheading the “toys-to-life” concept, which Nintendo later embraced with its Amiibos. The Activision Blizzard subsidiary’s most successful projects include the Spyro the Dragon series, Skylanders and Crash Bandicoot 4: It’s About Time. The Gamer reported in late January that Toys for Bob would cut 40 percent of its staff, which would have only been around 35 jobs.
In addition, another 76 Activision Blizzard employees will lose their jobs (also on March 30) at an address in San Mateo, CA, matching the headquarters of Sledgehammer Games. The studio has developed or contributed to several Call of Duty games, including CoD: Modern Warfare 3 (2011), CoD: Advanced Warfare (2014), CoD: WWII (2017) and CoD: Vanguard (2021). The studio was founded in 2009. Insider Gaming reported in January that Sledgehammer Games would close its offices and go fully remote.
In late January, Microsoft said it would slash 1,900 jobs across its Xbox, Activision Blizzard and ZeniMax (Bethesda) teams. The Federal Trade Commission (FTC) filed a complaint in a federal appeals court on Wednesday, arguing that the substantial round of layoffs “contradicts Microsoft’s representations in this proceeding.” The government agency asked for a temporary pause of Microsoft’s Activision Blizzard acquisition, which appeared all but locked up after the UK’s Competition and Markets Authority approved the $69 billion purchase in October.
An estimated 10,500 gaming industry workers fell victim to layoffs in 2023. We’ve already seen 6,000 more in 2024, only slightly over a month into the new year. It’s been part of a devastating year-plus of broader tech-industry layoffs.
