Publisher will shell out up to $50m in severance costs to lost staff

500 jobs go in Activision restructuring

Cutbacks at Activision will result in 500 jobs lost at the publisher.

The firm this evening confirmed a restructuring effort to focus on a reduced slate of titles going forward, including the death of the Guitar Hero franchise, some near-completed projects, and layoffs at (and potential closures of) key studios.

A refocused publisher means ‘a related reduction in studio headcount and corporate overhead’.

"The plan will result in the separation of approximately 500 employees," a corporate filing by the publisher adds.

"The plan is expected to be implemented in the quarter ending March 31, 2011, resulting in a net pre-tax charge in the first two quarters of 2011, which is expected to total between $35 and $50 million, comprised of severance costs, the costs of other separation benefits and other exit costs.

"All of the above estimated charges are expected to result in future cash expenditures during 2011."

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