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[ATVI] Blizzard Mass Layoffs ~600 - Page 3

post #21 of 65
Quote:
Originally Posted by Mac the Geek View Post

There's a difference between "money-losing company that has to cut costs to survive" and "profitable company that fires people to boost the stock price and inflate the CEO's year-end bonus".
I don't follow ATVI closely, but just at a glance, it doesn't look like they're losing money. EPS is positive, and the share price is up slightly over a year ago (although down some in the last 3 months). I'd want to look deeper before buying any stock, but I don't see anything that points to the company losing money.

And just about every major corporation does it these days. Kill the workforce, kill benefits, make the CEO richer.

Take a good look at Staples: Reduced workforce, reduced employee benefits while charging more, lost sales, lost spot on Fortune 500, lost profits, lost growth, and last year the CEO got a 41% increase.

Sounds pretty fair, huh?
post #22 of 65
Quote:
Originally Posted by james_ant View Post

These people are most likely just call support representatives and in game mods who probably get paid close to min wage to start. Their probably mostly young people who will probably be going to school anyway.
I mean after this long running WoW they must have found ways to minimize the cost of running and maintaining the online parts of the game.

This.
Quote:
Originally Posted by FallenFaux View Post

Yes, a business should hold onto people even if they have no work for them, or if they are cutting the sections they work in. Yup, makes way more sense to pay 600 people to stand around and do nothing. In fact, Blizzard should just hire a ton more people, don't worry about whether or not they have work for them to do, as long as the company doesn't go bankrupt they can just give all their money away.
Edit:
I read that, and immediately thought of "Red Shirts."

And this.
Quote:
Originally Posted by XNine View Post

And just about every major corporation does it these days. Kill the workforce, kill benefits, make the CEO richer.
Take a good look at Staples: Reduced workforce, reduced employee benefits while charging more, lost sales, lost spot on Fortune 500, lost profits, lost growth, and last year the CEO got a 41% increase.
Sounds pretty fair, huh?

Staples is not Blizzard.
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post #23 of 65
Quote:
Originally Posted by FallenFaux View Post

Yes, a business should hold onto people even if they have no work for them, or if they are cutting the sections they work in. Yup, makes way more sense to pay 600 people to stand around and do nothing. In fact, Blizzard should just hire a ton more people, don't worry about whether or not they have work for them to do, as long as the company doesn't go bankrupt they can just give all their money away.
Edit:
I read that, and immediately thought of "Red Shirts."

I find it funnny that the people who are most in favor of business cutting people seem to have the worst understanding of business itself.

You're crazy if you think that bliz has 600 people who had nothing to do. No, what they most likely did is what most companies are doing these days, which is firing people who they need, overworking the remaining workforce, putting themselves in a worse situation for long term competitiveness and 90% of the 'savings' will be used up in executive compensation.
    
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post #24 of 65
Quote:
Originally Posted by Joephis19 View Post

From a business standpoint, if you can provide the same level of service, maintain quality, and provide value to shareholders with 600 less people, you are crazy not to.

If you look at quality of service and product quality in almost any field over the last 20 yrs you'll find that its a constant downward trend. Most customer service is incredibly understaffed.

For example, ask a call center rep what the last 20 yrs has been like and I bet every last 1 will tell you it went from consistent work where the customer almost never has to wait a single second to back-to-back calls with not even 1 second between calls all day, every day and the customer waits for 10-20 min on avg.
Quote:
Originally Posted by Zulli85 View Post

Staples is not Blizzard.

Before Bliz and Activision merged, i would have agreed with you but given Kotick's business history, i'd say that the example is relative to the issue
Edited by FuNkDrSpOt - 2/29/12 at 6:40pm
    
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post #25 of 65
Quote:
Originally Posted by FuNkDrSpOt View Post

I find it funnny that the people who are most in favor of business cutting people seem to have the worst understanding of business itself.
You're crazy if you think that bliz has 600 people who had nothing to do. No, what they most likely did is what most companies are doing these days, which is firing people who they need, overworking the remaining workforce, putting themselves in a worse situation for long term competitiveness and 90% of the 'savings' will be used up in executive compensation.

Why not just sum up your point of view by saying "people who try to make money are evil!"? Let me guess, you think they should just hire people whether or not they need the employees until their net profits = zero and then it will be fair, right?
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post #26 of 65
Quote:
Originally Posted by headcase9 View Post

Why not just sum up your point of view by saying "people who try to make money are evil!"? Let me guess, you think they should just hire people whether or not they need the employees until their net profits = zero and then it will be fair, right?

It shows a serious lack of critical thinking when your entire argument is based on a fallacy
http://en.wikipedia.org/wiki/False_dilemma
    
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post #27 of 65
Quote:
Originally Posted by FuNkDrSpOt View Post

I find it funnny that the people who are most in favor of business cutting people seem to have the worst understanding of business itself.
You're crazy if you think that bliz has 600 people who had nothing to do. No, what they most likely did is what most companies are doing these days, which is firing people who they need, overworking the remaining workforce, putting themselves in a worse situation for long term competitiveness and 90% of the 'savings' will be used up in executive compensation.

I guess you missed this part,
Quote:
After evaluating our current organizational needs, we determined that while some areas of our business had been operating at the right levels and could benefit from further growth, other areas had become overstaffed.

They fired some and hired others, sounds like them trimming the fat to me. But if you want to believe that everything businesses do is for some nefarious evil plot, have at it.
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post #28 of 65
Quote:
Originally Posted by Maxxa View Post

Those 600 jobs will not cause the company to bankrupt... it just increases thier bottom line for the shareholders.
Being an employer used to mean getting paid and taking care of your business which includes your employees, now employees are a source of income to fatten the bottom line. I don't like it and I don't think it is how things should be done. This is my opinion.

In your threads, subverting your capitalist viewpoints! But seriously, if there are people you don't need in a company, why are you still paying them and asking them to come to work? I'm working as a carpenter right now, and people get laid off constantly- sometimes there just isn't enough work to justify paying 2 guys $20/hour for 6 hour days when you could just pay the more efficient guy $20/hour for 9 hour days and have approximately the same amount accomplished. I wouldn't want to be laid off, but I would understand it if it happened- sometimes there just isn't the demand for what you have been doing for the past few years.

If this leads to poor customer service Blizzard will pay the price. Just like in other industries when you lay someone off- if they go and get a different job and don't want to come back, you have to pay to train someone new.
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post #29 of 65
Quote:
Originally Posted by FuNkDrSpOt View Post

If you look at quality of service and product quality in almost any field over the last 20 yrs you'll find that its a constant downward trend. Most customer service is incredibly understaffed.
For example, ask a call center rep what the last 20 yrs has been like and I bet every last 1 will tell you it went from consistent work where the customer almost never has to wait a single second to back-to-back calls with not even 1 second between calls all day, every day and the customer waits for 10-20 min on avg.
Before Bliz and Activision merged, i would have agreed with you but given Kotick's business history, i'd say that the example is relative to the issue

You may be right but as far as I knew Blizzard still operated independently from Activision. I could be wrong about that though, was quite a while ago when I heard that.
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post #30 of 65
Quote:
Originally Posted by headcase9 View Post

Why not just sum up your point of view by saying "people who try to make money are evil!"? Let me guess, you think they should just hire people whether or not they need the employees until their net profits = zero and then it will be fair, right?

Probably because that isn't the point... greed is evil, ie Bobby Kotick (personal opinion).

There is nothing wrong with making more money, but making money at the expense of a productive employee's livelihood while being the highest paid person in the company by tens if not hundreds of multiples is unethical and wrong.
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