Activision Blizzard cuts esports staff amid uncertain future for Overwatch League

Activision Blizzard has made a round of layoffs at its esports division, while confirming that big changes may be in store for the Overwatch League.

On Wednesday, the company reportedly cut around 50 employees in what appeared to be “a significant gutting” of its esports division, one of the affected team members told The Verge.

“There was no warning,” they said. “This was a complete shock to everyone, and none of us who were laid off were offered any opportunity to switch roles or teams.”

In a statement, Brad Crawford, senior director of global communications of Activision Blizzard esports, claimed: “We remain committed to the future of esports, and we regularly assess how our staffing aligns with our business goals to ensure we can evolve with changing trends and best deliver for our teams, players, and fans. As always, supporting our employees through transition is our top priority.”

The layoffs were made amid uncertainty over the future of the Overwatch League, with Activision announcing on Wednesday that franchise owners are set to vote on whether to continue the competition in its current format.

“During the second quarter, we amended certain terms of our collaborative arrangements with team entities participating in the Overwatch League,” it said. “According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement.

“If the teams do not vote to continue under an updated operating agreement, a termination fee of $6 million will be payable to each participating team entity (total fee of approximately $114 million).”

While big changes may be afoot, Overwatch League commissioner Sean Miller told The Verge: “I want to be clear on one thing in particular, that Overwatch remains committed to a competitive ecosystem in 2024 and beyond. And we’re building toward a revitalized global scene that prioritizes players and fans.”

Blizzard said on Wednesday that it plans to make “a selection” of its PC games available on Steam, starting next month with Overwatch 2.

Microsoft and Activision Blizzard also announced that they’ve agreed to extend their merger agreement until October as they continue to seek regulatory approval to complete the $69 billion deal.