Activision Blizzard lays off around 50 esports staff amid a potential Overwatch League overhaul

engadget.com:

Amid the pending takeover of Activision Blizzard by Microsoft, the former has laid off around 50 employees from its esports division. The company is also preparing for some potential huge changes to the Overwatch League (OWL), which may bring an end to its city-based franchise format.

Employees were informed of the layoffs on Tuesday, according to The Verge. One now-former member of the team told the publication that the layoffs came out of nowhere and suggested that a skeleton crew could close out the OWL and World Series of Warzone seasons. However, they added that "in my eyes, they are completely unequipped to internally support anything esports after that.” Activision Blizzard also laid off around 50 people from its esports teams in March 2021.

The company noted in an earnings report released today that it modified its agreements with Overwatch League team owners last quarter. "According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement," the report reads. "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." The company added that OWL's total revenue accounts for under one percent of its consolidated net revenues. 

Reports recently suggested that the Overwatch League waived its remaining franchise fees, with teams still owning between $6 million and $7.5 million after payments were deferred due to the COVID-19 pandemic. A spot in the league was originally said to cost $20 million, and that reportedly jumped to over $30 million for expansion teams that joined in the second season in 2019.

Great deals on consumer electronics