Mass layoff at Activision left Overwatch League’s future in jeopardy 

In its press release announcing its quarterly financial results, Activision Blizzard revealed that it is offering franchises who wish to leave the Overwatch League a $6 million payout.

Activision Blizzard’s decision to reportedly lay off more than 50 employees from its esports division raises concerns about the sustainability of the Overwatch League. The organization has also disclosed that a few modifications will be made to the contract it has with the Overwatch League franchise’s team owners. Activision Blizzard stated in its most recent financial report that teams in the Overwatch League will vote on a revised operating agreement after the current season is over.

Although the contents of the aforementioned deal have not yet been made public, voting against it will result in a $6 million payout to the team owner.  If franchise owners decide to break their contract, the Overwatch League will likely come to an end in its current form, but Activision Blizzard still has plans to promote Overwatch esports.

Sean Miller, the Overwatch League commissioner, and Brad Crawford, Senior Director of Global Communications at Activision Blizzard, said that despite the difficulties currently plaguing Overwatch esports, the firm is dedicated to the league’s future. But, a report by The Verge casts doubt on the future of Activision Blizzard’s esports and claims that there aren’t enough employees remaining to run the Call of Duty League or Overwatch League.

Mass layoffs leave Overwatch League’s future in jeopardy 

The popularity of the Overwatch League has slowly plummeted over the years as a result of its inability to live up to its promises of being a global league with events held all over the world and throughout the year. Since season 1, there have been a lot fewer games played offline. In the current season, there were only two LAN events, the Midseason Madness, and the Season playoffs.

Moreover, the OWL team owners have long argued that the league does not pay them enough money. According to Sports Business Journal, teams get about $1 million from Activision, but it costs between $3 million and $5 million per year to operate a successful squad, hence the majority of the Overwatch teams have been losing money. 

Moreover, according to a report by esports journalist Jacob Wolf from earlier this year, the OWL teams hired a law firm to speak with Activision Blizzard on their behalf to get some type of financial assistance. With the financial repercussions, low viewership, and the instability of the league in its current form, it wouldn’t be surprising if OWL clubs decided to break their contract with the league.

Header: Joe Brady/Blizzard