Activision Blizzard CEO considers stepping down if culture not fixed, organisations cut ties

Activision Blizzard CEO Bobby Kotick, who has come under fire recently for mishandling harassment complaints, said in a meeting with the company's Blizzard Entertainment unit that he will will consider leaving the company if he can't quickly fix the culture problems in the company, The Wall Street Journal (WSJ) reported. 

In a statement earlier in October, Kotick said that he had asked the board to reduce his pay to the lowest amount California law would allow for people earning a salary - US$62,500 this year - "to ensure that every available resource is being used in the service of becoming the industry leader in workplace excellence". He further specified that this would be a reduction in his overall compensation, and will not be receiving any bonuses nor granted any equity during this time. 

"I truly wish not a single employee had had an experience at work that resulted in hurt, humiliation, or worse – and to those who were affected, I sincerely apologise. You have my commitment that we will do everything possible to honor our values and create the workplace every member of this team deserves," Kotick said.

The statement also included the announcement of a zero-tolerance harassment policy in the company, as well as the end of mandatory arbitration for harassment and discrimination claims.

Kotick and Activision first made headlines after California's Department of Fair Employment and Housing received several harassment complaints and launched an investigation into Activision in October 2018. The Department had then filed a gender-based discrimination, inequality and harassment lawsuit against Activision Blizzard last month for fostering a workplace culture that included excessive drinking and sexual harassment, reported The Washington Post. 

The company later faced backlash from employees, business partners and consumers after WSJ released an investigation into Kotick's handling of sexual-misconduct allegations on 16 November, 2021. The article by WSJ, citing interviews and internal documents, claimed that Kotick knew about the sexual misconduct allegations across the company, including rapes, but did not report them to the company’s board of directors. It also detailed misconduct allegations against Kotick, including an instance where he threatened in a voice mail to have an assistant killed. According to CNN Business, the article by WSJ led to a walkout by Activision employees the following day, as well as an online petition calling for Kotick to step down. A quick check by MARKETING-INTERACTIVE showed that the petition has been signed by 1,780 employees as of today. 

Activision had also issued a statement denying the claims stated in WSJ's article which "presents a misleading view of Activision Blizzard and (its) CEO". The statement said that instances of sexual misconduct that were brought to Kotick attention were acted upon. "The WSJ ignores important changes underway to make this the industry’s most welcoming and inclusive workplace and it fails to account for the efforts of thousands of employees who work hard every day to live up to their – and our - values. The constant desire to be better has always set this company apart," the company said. 

However, regardless of the factual accuracy of WSJ's article, the damage has been made as the company sees several partner companies and organisations back out.

Girls Who Code, a non-profit group which promotes female participation in computing careers, said in an online statement on 19 November 2021 that it is ending its partnership with Activision, following "recent revelations about allegations of assault, harassment, and a toxic work environment throughout the company". Girls Who Code had been partnering with Activision on its Summer Immersion Program since 2018. Girls Who Code added that the news about Activision proves that their priorities are fundamentally misaligned, and it cannot in good conscience continue to work with a company that is so antithetical to its own values. "Our priority has and always will be to stand up for women and other underrepresented groups in tech and ensure that they are given the support and stability they need to actively thrive as they pursue a career in computer science," it said.

Additionally, Microsoft's head of Xbox Phil Spencer said in an email to its staff that he and the gaming leadership team are disturbed and deeply troubled by the recent revelations over Activision, The Straits Times (ST) reported. He added that he is evaluating all aspects of Xbox's relationship with the company and is making ongoing proactive adjustments. According to ST, Sony Group's PlayStation chief Jim Ryan also sent a similar note to its staff on 17 November 2021, further adding that him and his leadership were stunned that Activision had not done enough to address the workplace culture of discrimination and harassment. 

Earlier, Kellogg’s cut ties with the Overwatch League as a sponsor following the lawsuit filed by California’s Department of Fair Employment and Housing that raised allegations of sexual harassment and discrimination at the firm. While Kellog’s spokesperson acknowledge the company addressing the challenges and allegations it faced, the brand said it will not move forward with any plans this year.

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