Labor Issues

Posted: Mon., Feb. 13, 2006, 9:00pm PT

Layoffs on tap at Activision

Vidgamer trims staff

Following a disappointing holiday season, Activision is laying off nearly 7% of its global workforce, or around 150 people.

Earlier this month, competitor Electronic Arts laid off 325 employees, or about 5% of its workers (Daily Variety, Feb. 2).

Activision is headquartered in L.A., meaning some of its cuts will undoubtedly hit the city. Distribution of cuts between departments and locations wasn't available.

Vidgame publisher's profit fell 20% last quarter amid an overall industry slowdown, weak shipments of the Xbox 360 and a few game releases that missed, most notably "True Crime: New York City" (Daily Variety, Feb. 7).

In addition, Activision on Monday signed a pact with Hasbro to make games based on "Transformers," starting with a tie-in to the Paramount/DreamWorks pic slated for summer 2007 release.

Shares in Activision were up 1% at $13.07 Monday before layoff news got out.

Contact the Variety newsroom at news@variety.com

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