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Activision/Blizzard merger to result in job cuts
Activision-Blizzard CFO Thomas Tippl talked to MCVUK about economic reality: mergers result in job cuts.
People who don't know much about economics may not know this, but when two companies merge, there's likely going to be job cuts. Why? Because both companies have usually departments that do the same work. And who would need two departments filled with costly people when they could have the job done with one?
That's in short the message Activision-Blizzard's CFO stated:
People who don't know much about economics may not know this, but when two companies merge, there's likely going to be job cuts. Why? Because both companies have usually departments that do the same work. And who would need two departments filled with costly people when they could have the job done with one?
That's in short the message Activision-Blizzard's CFO stated:
“With every merger, there is overlap and redundancy, and so the same will be true here. Of course we’re going to go to our customers with one face. We don’t need two sales forces,” he explained.
“Having said that, if you look at our industry, it’s rapidly growing – last year it grew 30 per cent. So over time I expect our headcount to grow.”
“But in the short term we will exterminate some of our overlap through redundancy – but we will treat people respectfully.”
“We will try to put the best team together – the all-star team. We’ll update both companies’ skill and experience levels and become a formidable company,” he added
So out with the "not-so-well-performing" and in with the top guys.“Having said that, if you look at our industry, it’s rapidly growing – last year it grew 30 per cent. So over time I expect our headcount to grow.”
“But in the short term we will exterminate some of our overlap through redundancy – but we will treat people respectfully.”
“We will try to put the best team together – the all-star team. We’ll update both companies’ skill and experience levels and become a formidable company,” he added
In other news:
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