Amid Internal Sexual Misconduct Controversy... US Blizzard Fires 37 Employees in Bulk

[Asia Economy Reporter Seulgina Jo] American game company Activision Blizzard, which has been under scrutiny due to workplace sexual harassment scandals, recently fired 37 employees involved in the incidents in bulk. The number of disciplined employees reached 44.

The Wall Street Journal (WSJ) reported on the 17th (local time), citing multiple sources, that Blizzard took these measures as part of efforts to resolve the sexual harassment and discrimination scandals surrounding the company.

This followed a lawsuit filed by the California Department of Fair Employment and Housing (DFEH) in July last year, accusing Blizzard of violating state law by neglecting sexual harassment. Since then, the company has received over 700 related reports. Especially as controversies continued over the company’s management allegedly turning a blind eye to workplace sexual harassment and discrimination, demands for improvement came from Blizzard’s shareholders, employees, and business partners.

Blizzard spokesperson Helaine Klasky confirmed that 37 employees were "exited." Additionally, 44 employees were disciplined. However, she disputed the claim regarding the receipt of over 700 reports. It is known that these reports included a wide range of issues, from positive workplace matters to serious cases that the company investigated.

Blizzard, headquartered in Santa Monica, California, is the developer of popular games such as Candy Crush, World of Warcraft, Call of Duty, and Overwatch. However, it came under fire after media reports revealed that the company had tolerated workplace sexual crimes and gender discrimination, leading to official investigations. WSJ added that Bobby Kotick, who served as CEO for over 30 years, was aware of a female employee’s email appeal about sexual assault but took no action.

Following the investigation by the California Department of Fair Employment and Housing, the U.S. Securities and Exchange Commission (SEC) also launched an inquiry. Blizzard announced that it would implement corrective measures. The company is understood to have reviewed over 90% of the 700 reports submitted by employees so far.

Calls for CEO Kotick’s resignation are growing louder. About one-fifth of the approximately 10,000 employees signed a petition demanding Kotick’s resignation. Shareholders and partners are also raising their voices. Toy company LEGO temporarily suspended plans to launch a product line based on Blizzard’s Overwatch series in connection with this incident. Spokesperson Klasky said, "We are taking LEGO’s feedback seriously and discussing it."

Blizzard’s stock price is also on a downward trend. Since the first investigation results were disclosed in July last year, it has fallen by nearly 30%. British investor Pinetree International sent a letter to Brian Kelly, chairman of Blizzard’s board, urging an independent investigation by an external law firm. They also warned that they might sell their shares if appropriate measures are not taken. Pinetree holds a 0.6% stake in Blizzard.

This content was produced with the assistance of AI translation services.