Unconfirmed: More Layoffs at WotC

[Fifth Element]

Er, we have one (what looks to be voluntary) exit and one (what looks to be) redundancy, but could be anything. Hardly a "mid-year round of lay-offs" just yet.

Indeed. The unconfirmed part of the thread title seems to outstrip the layoffs part, at this point at least.

 

[Blastin]

Gak.....I can't imagine the stress that working under those circumstances would cause...

 

[Dausuul]

Indeed. WotC generally has a re-org most Decembers, but is not adverse to a mid-year round every now and then. I believe I made it though a dozen lay-offs before my number was called.

Dear God! Layoffs every year is abysmal management. Either the executives are consistently overestimating their revenue stream, or they're consistently underestimating costs.

If you have to lay people off - not just firing bad workers, but getting rid of good workers because you can't afford to pay them - that's a huge red flag that you need to change something about your company. Every effort should be made to ensure that it's a one-time event (at least for the next few years). Multiple rounds of layoffs wreaks havoc with employee morale and sends turnover through the roof... and the people most likely to quit are the ones best able to get a job elsewhere, i.e., the best workers.

I've been pretty skeptical of claims that the D&D division of WotC is entering a TSR-like death spiral, but if they really do have layoffs every December (and sometimes an extra round in the summer!)... then either the person running the D&D line is utterly incompetent, or they know D&D as a profit-making enterprise is doomed and they're just trying to keep it going as long as they can out of love for the game.

Either way it's a bad, bad thing.

 

[The Shaman]

Dreams also have a way of dying hideous deaths under the aegis of bad management.

Ouch.

Been there. Not good.

 

[Mark]

Aside from their yearly X-Mas layoffs, haven't they always chopped personel at other times of the year? Some people like Monte Cook and, apparently, Andy Collin are usually astute enough to see these things coming and arrange to make a move before it happens to them, but this doesn't only happen at the one time of year, IIRC. Scott Rouse wasn't a X-Mas thing either, was he? Of course, Chris Sims will likely get called on the carpet for leaking the info and it'll be weeks before more of this is known but at corporations with this built into the nusiness model these usually come in bunches not in ones and twos.

 

[Mark]

If you have to lay people off - not just firing bad workers, but getting rid of good workers because you don't have enough work for them - that's a huge red flag that you need to change something about your company.

That's actually part of the business model not a coincidental thing that they just haven't noticed is a trend.

 

[lurkinglidda]

I hope this isn't too intrusive a question, but how did you guys handle the uncertainty?

You rely on each other for support. We formed bonds as we went through the traumatic times together. We became family and support systems for each other. And when we lost someone it hurt. Even if you yourself have already been let go it still hurts.

There's a grieving period. You deal with survivor's guilt. Then you get back to work and keep your nose down for a few months.

Also, I packed up my desk about once a year, so in case I was let go it wouldn't take long for me to get out of dodge. When I was let go I was out in 20 minutes.

 

[Darrin Drader]

Dear God! Layoffs every year is abysmal management. Either the executives are consistently overestimating their revenue stream, or they're consistently underestimating costs.

There's also option 3: the expectations of the parent company exceed the earning potential of a particular brand. Niche, specialized games, even when it's the biggest one in its category, isn't enough to justify the expenses to a large corporation. Put the same game in the hands of a smaller gaming company, one that is used to running on a tight budget, and it would seem to them like money was raining down from heaven, even with the number of employees WotC has.

 

[Dausuul]

That's actually part of the business model not a coincidental thing that they just haven't noticed is a trend.

Seriously? That's their business model - to shrink the business year by year? What's the long-term strategy then? Do they expect to revive the product with 5E or just let it wither away altogether?

...I suppose the latter could be a viable strategy, actually. If you honestly don't think D&D has a future, but there's profit to be had now, then squeeze it for what it's worth until the well runs dry. But it's a pretty grim outlook if that's the case.

There's also option 3: the expectations of the parent company exceed the earning potential of a particular brand. Niche, specialized games, even when it's the biggest ones in its category, isn't enough to justify the expenses to a large corporation. Put the same game in the hands of a smaller gaming company, one that is used to running on a tight budget, and it would seem to them like money was raining down on them, even with the number of employees WotC has.

To me that falls under the heading of "overestimating revenue stream." If the company isn't earning enough to justify ownership by the parent company, and attempts to change the situation fail, then the parent should a) spin the company off, b) sell it, or c) liquidate it.

But I will certainly grant the possibility that the mismanagement is coming from Hasbro rather than WotC.

 

[firesnakearies]

Sounds like a horrible business model, to me.

I mean, I'm not saying that it might not work, that it might not be very profitable for the company.

It's just . . . unfortunate.