Activision Blizzard, one of the biggest game developers in the world, will fire about 50 staff in an effort to cut costs across the company.
The company said that the layoffs will be taking place across divisions that dealt mainly with live events and esports.
Staff being laid off will receive 3-months of severance pay, along with health benefits for the next 12 months and a $200 gift card.
This move comes as the landscape for esports and live events takes a severe hit due to the global pandemic grinding travel and physical events to a halt.
Audience viewership habits have also changed in the past year, resulting to a drop in revenues for the company’s live events and esports divisions.
“Players are increasingly choosing to connect with our games digitally and the e-sports team, much like traditional sports, entertainment, and broadcasting industries, has had to adapt its business due to the impact the pandemic has had on live events,” an Activision Blizzard spokesperson mentioned in a statement.