Novato Gaming Company Toys for Bob Set to Lay Off 86 Employees
Popular video game developer, Toys for Bob, is preparing to let go of 86 employees at the end of March. The Northern California-based company, known for popular titles like "Crash Bandicoot" and "Spyro," is a subsidiary of gaming giant Activision Blizzard, which was acquired by Microsoft last year. The layoffs come as part of a larger restructuring plan by Microsoft, which aims to cut approximately 1,900 roles across its gaming division.
Microsoft's Acquisition of Activision Blizzard Sparks Layoffs
Following Microsoft's $68.7 billion acquisition of Activision Blizzard, subsidiary Toys for Bob is the latest casualty of the gaming giant's reshuffling. In January, Microsoft announced plans to reduce its workforce by nearly 2,000 positions, with Toys for Bob being one of the affected studios. The layoffs are expected to take place on March 31 and severance benefits will be provided to impacted employees in accordance with local employment laws.
Additional Activision Layoffs Planned Across California
In addition to the Toys for Bob layoffs, Activision Blizzard is set to cut another 812 positions across California at various locations including Irvine, Santa Monica, San Mateo, and Woodland Hills. These layoffs come as the technology sector, including the video game industry, continues to face challenges such as mergers and acquisitions and the rise of AI. The Marin Economic Forum suggests that these layoffs are part of a broader trend of cost-cutting and consolidation within the industry.
Tech Sector Facing Layoffs Nationwide
The gaming industry is not the only sector experiencing layoffs and restructuring. Companies like Google, Twitch, Amazon Prime Video, and MGM Studios have also announced workforce reductions in recent times. The Marin Economic Forum believes that these actions are driven by a desire to reduce costs and streamline operations. Despite the layoffs, the forum highlights information technology and digital media as key growth sectors in the Marin region.
Shifts in the Gaming Industry Amidst the Pandemic
While many gaming companies saw a surge in revenue during the pandemic, some have had to make adjustments as a result of rapid expansion. This has led to layoffs and downsizing, as seen with Toys for Bob and other studios. Marin has seen various gaming companies come and go over the years, but the Marin Economic Forum remains optimistic about the region's growth potential in information technology and digital media.
Analyst comment
Negative news. The layoffs at Toys for Bob and Activision Blizzard, along with other layoffs in the tech sector, indicate cost-cutting measures and corporate restructuring trends. The market may see some short-term declines as a result, but the IT and digital media sector in Marin is still identified as a key growth sector in the long term.