Update: Blizzard Entertainment president J. Allen Brack issued a statement confirming that the company will “be reducing the number of non-development positions in North America and anticipate a related process in our regional offices over the coming months subject to local requirements.” Brack also stated that esports and the Overwatch League are “important priorities, and we will continue to produce great competitive content.”

Activision Blizzard will lay off roughly 800 employees, the company announced on its Q4 earnings conference call.

This equates to 8% of Activision Blizzard’s global workforce.

According to its financial report, net revenue for 2018 was a record for Activision Blizzard.

Activision Blizzard announced in its Q4 2018 earnings call today that it will be cutting its global workforce by 8%. Based on a 2018 estimate of a staff of roughly 9,600 employees worldwide that will mean a layoff of more than 750 employees.

“While our financial results for 2018 were the best in our history, we didn’t realize our full potential,” Activision Blizzard CEO Bobby Kotick said in an earnings report statement prior to the call. “To help us reach our full potential, we have made a number of important leadership changes. These changes should enable us to achieve the many opportunities our industry affords us, especially with our powerful owned franchises, our strong commercial capabilities, our direct digital connections to hundreds of millions of players, and our extraordinarily talented employees.”

The layoffs will affect Activision Publishing, Blizzard Entertainment , and King. But Kotick detailed plans to put more focus on live services, Battle.net, esports, and advertising.

“In 2019, the company will increase development investment in its biggest franchises, enabling teams to accelerate the pace and quality of content for their communities and supporting a number of new product initiatives,” according to a release detailing the company’s outlook. “The number of developers working on Call of Duty , Candy Crush, Overwatch , Warcraft, Hearthstone and Diablo in aggregate will increase approximately 20% over the course of 2019. The company will fund this greater investment by de-prioritizing initiatives that are not meeting expectations and reducing certain non-development and administrative-related costs across the business.”

According to the company’s financial report, 2018 was the most profitable year for Activision Blizzard to date, with net revenue for the quarter coming to $2.38B and net income for the year at $1.8B. That puts 2018’s net revenue at $7.5B, exceeding the $7.02B made in 2017.

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Overwatch League will also be a key area of focus on the esports side. And there are plans to create more games around tentpole franchises like Warcraft to keep players engaged.

Rumors of incoming layoffs have been swirling around for the past few months, and came to a head when the publisher announced last month it would be parting ways with developer Bungie and the Destiny property. Late last year, Activision Blizzard also canceled its Heroes of the Storm esports initiatives.