Activision Blizzard highlights risk factors for negative impact of its job cuts on financial performance

Publishing giant Activision Blizzard has said that it is concerned about the potential negative effect the eight per cent workforce cull that it announced last month could have on its business.

In its annual report 10-K filing with the United States Securities and Exchange Commission, published on February 28th, Activision Blizzard is compelled to warn investors of any risk factors that may impact its financial performance.

Potential negative effects

Much of this section is devoted to fairly typical concerns it has reported before, including the company not being able to deliver popular games consistently, its dependence on a small number of franchises, managing its own growth and the potential for legal proceedings.

This time, however, Activision Blizzard has said one potential risk factor is that it might not be able to "realise the expected financial and operational benefits" of the job cuts it announced alongside its most recent financial results. Furthermore, the publisher has said that the cuts could actually "negatively impact" its business.

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