February 12, 2019 Activision-Blizzard confirms that it will lay off 8% of its employees after a disappointing financial quarter.

Activision-Blizzard posted its fourth-quarter financial results today, and the company posted the greatest profits in its history. However, that revenue is significantly lower than expected, and the company plans an 8% reduction in headcount – which translates to nearly 800 Activision-Blizzard employees losing their jobs, many of them today. The move comes on the heels of disappointing earnings over the past year and a split with Destiny 2 developer Bungie last month.

The company posted net revenue of $2.38 million for the year. CEO Bobby Kotick says in the earnings report that “While our financial results for 2018 were the best in our history, we didn’t realize our full potential.” In addition to the disappointment of 2018, the company doesn’t expect growth in 2019 to match industry potential, with a lack of major releases to drive new profits. During a conference call discussing the report, the company says it will be “aggressively” hiring to expand development efforts.

However, layoffs will hit all Activision-Blizzard subsidiaries – including Activision, Blizzard, and King – and will be focused on non-development departments. In an internal memo obtained by Kotaku, Blizzard president J. Allen Brack says “Over the last few years, many of our non-development teams expanded to support various needs. Currently staffing levels on some teams are out of proportion with our current release slate. This means we need to scale down some areas of our organization.”