Wizards of the Coast LAYOFFS

[AnthonyRoberson]

One thing no one has mentioned so far...

...is the fact that REAL people are losing their jobs here. Let's remember that and keep them in our prayers. I'm sure that many of the employees being laid off have mortgages to pay, wives and kids to feed - just like you and me. How would you feel if you lost your job today?

Let's keep that in mind as this discussion goes forward.

 

[Chronosome]

Chrono shakes Anthony's hand.

You just made my day, friend.

 

[Wolfspider]

...is the fact that REAL people are losing their jobs here. Let's remember that and keep them in our prayers. I'm sure that many of the employees being laid off have mortgages to pay, wives and kids to feed - just like you and me. How would you feel if you lost your job today?

I would feel devastated. Then again, I don't have a job with a company with a recent history of layoffs. If I were employed at such a job, I would feel that it was my responsibility to my family and to myself to be prepared for just such a devastating event--saving money, always being on the lookout for other, more permanent jobs, and so forth.

Yes, it's horrible to lose a job. But it shouldn't have come as a great surprise to any of the people laid off. I wish them well in making the transition to their next place of employment.

 

[Henry]

Anthony, you are exactly right. I truly sympathize with these people. If anyone takes a job in the RPG business, they really need to have a fallback career (even if it's just telemarketing) lined up, because you aren't expected to stay long. Unortunately, unlike the field of computer technical support, RPG designers and support staff aren't in huge demand in markets all over the country. It's not even like teaching, where you are almost guaranteed to make low wages, yet with a good recommendation you are wanted almost anywhere in the country. There are school districts practically begging for teachers though they are not paying very high wages.

Nikchick, I'm sorry to hear it. It is a painful thing to see friends get "run over roughshod" and not be able to help.

 

[Number47]

If Wizards employs thousands of people (corporate, not retail), then we're talking a scale-back of a couple percent. This is hardly draconian or a death knell. I do feel bad when anybody loses a job, but we all know it happens. It's probably happened to most of us before.

 

[Nikchick]

If Wizards employs thousands of people (corporate, not retail), then we're talking a scale-back of a couple percent. This is hardly draconian or a death knell. I do feel bad when anybody loses a job, but we all know it happens. It's probably happened to most of us before.

Wizards employs thousands if you count the staff in the chain of retail stores. If you're talking about people working at the corporate office, you're talking about a staff of ~600, maybe. As for the rumored "bloat" and the idea that WotC had hired up a lot of people to push out 3E or handle Pokemon, those people are already gone, gone, gone. WotC was done with the ramp-up to 3E over two years ago already!

Folks being laid off this time around are not a bunch of faceless nobodies from shipping, or superfluous bodies hired during some big glut. WotC was quite a large company before acquiring D&D, and before the Hasbro buyout and we're talking about cutting into staff that's been there for 4 years, 5 years, longer. People who do have houses and children, not necessarily because they expected to have jobs for life but because they've been there long enough that you have to put down roots and just go about your business.

As for the person who replied that if you're working in the game biz you need to have a back-up career, I'd give you that for everyone *but* Wizards of the Coast. WotC was a multi-million dollar, multi-national company even before the Hasbro buyout. It's reasonable to assume you can have an ongoing career with a company of that size: people cetainly have respectible long-term careers at companies who have a lot less.

Erk, my anxiety over this is getting the better of me. Sorry.

Nicole

 

[ColonelHardisson]

My condolances to those who have lost or are about to loose their jobs.

I could give a rat's rear end for the survival/non-existance of the game.

Human values first. It's just a frikking game, guys.

I certainly realize it's just a game, but layoffs are rampant everywhere, not just WotC. My own circle of friends and family, myself included, have been affected by the lousy economy. This doesn't mean I'm unsympathetic - just the opposite. But since so many everywhere are getting the boot, it's not unusual. So, since this is a D&D discussion board, and we're discussing the company that makes D&D, it makes sense to assess whether the game itself will be affected.

 

[ColonelHardisson]

Re: One thing no one has mentioned so far...

...is the fact that REAL people are losing their jobs here. Let's remember that and keep them in our prayers. I'm sure that many of the employees being laid off have mortgages to pay, wives and kids to feed - just like you and me. How would you feel if you lost your job today?

Let's keep that in mind as this discussion goes forward.

Yes, I understand your point, but since this is WotC, it seems highly relevant to discuss the future of D&D in light of the layoffs.

My brother-in-law worked for a place that made huge fiberglass storage tanks. It went under, and he lost his job a few months ago. He has two kids (my nephews), a house payment, and a car payment. While I could post about that here in an OT thread, the discussion would likely not be as relevant or active here as a thread about WotC layoffs.

Nobody wants anyone to be out of work. However, make some allowances to folk for wanting to discuss the future of D&D, since this is the company that makes it. That's what this message board is for.

 

[JacktheRabbit]

Even when agencies do offer insurance its at a higher cost than most companies do.

Also most agencies will give a week maybe two of vacation time if you work long enough but I have yet to see one that gives this and holiday time. Finally personal days and sick days either come out of your vacation time or out of your pocket.

i meant D&D wont be affected in a bad way.

And newsflash - temps DO get paid vacations and benefits after 6 months. from the temp agency. I should know.

 

[Vuron]

Honestly this hardly surprises me at all because in all likelyhood it's going to get worse before too long. Reasons for this revolve around modern business practices, which Hasbro no doubt follows.


While I have no figures on the sales, debt load, etc of Hasbro and WotC before they were purchased. It stands to reason that WotC had a relatively large staff for it's revenues considering both designers and editors are largely in house employees. Combine this with the large number of purchases made over the last couple of years and the money that was no doubt paid to acquire big licensees such as the Harry Potter license etc, and the WotC division probably had substantial debt load. Combine that debtload with the relatively high cost of printing, production, etc and the assertion that the core books are largely being sold at a loss and you have a certain degree of riskiness.

Furthermore it has been hinted that Pokemon and MtG sales have been flat or decreasing which indicates that revenues have decreased in that area since Hasbro purchased WotC and you can see why higher level executives might be concerned. As everyone says the majority of the core products for 3e are out already and while revenues are liable to be solid and might even increase due to the increase in the base cost of the 3e corebooks there is really no reason to suggest that sales will continue to grow at say 10-15% a year. While the current economy is definitely a drag it stands to reason the most Hasbro investors either expect increase in profits of 10-20% yearly. Hasbro therefore expects the WotC division to either keep up with sales goals which it might not be doing or decrease costs. As sales probably aren't going to steadily increase for the division as a whole cost cutting measures must be taken.

What that means is that WotC must decrease production costs and it's unlikely they can make much a decrease in printing costs so they must either decrease distribution or production costs. No doubt they are probably trying to integrate distribution with Hasbro thus decreasing warehouse space etc but this is unlikely to make that much of a dent. WotC therefore is liable to be under pressure to reduce people costs to increase profits so likely the business managers are looking at which division are more or less profitable. Areas that are hemorhaging and that don't have a fixed contract length with a 3rd party which is probably the case with major licensees like SW and Harry Potter, might be contracted or axed while divisions with large numbers of personnel are probably eyed very carefully. In the end x number of people are laid of or transferred to freelance contracts and WotC moves on. If however the division continues to not meet expectations expect for further layoffs down the road.