Activision Plans To Slash Its Workforce

Activision is to slash its workforce in a bid to restructure the firm and make it a more profitable business.
Following news that it is to scrap some of its key projects to concentrate on more Call of Duty, the firm said 500 jobs will go in the quarter ending March 31, 2011.
The move, however, will cost the publisher up to $50 million in severance pay.
“The plan will result in the separation of approximately 500 employees,” a corporate filing by the publisher adds.
“The plan is expected to be implemented in the quarter ending March 31, 2011, resulting in a net pre-tax charge in the first two quarters of 2011, which is expected to total between $35 and $50 million, comprised of severance costs, the costs of other separation benefits and other exit costs. 
“All of the above estimated charges are expected to result in future cash expenditures during 2011.”