Activision Blizzard Employees Walk Out; Investors Want CEO's Resignation

(RTTNews) - Activision Blizzard Inc.'s (ATVI) employees staged a mass walkout in demand of CEO Bobby Kotick's resignation in the sexual misconduct scandal that has taken drastic turns in the last few days. Reports say that a group of investors is also breathing down the neck of the board demanding Kotick's resignation as well as a large overhaul in the management board. Earlier, the Wall Street Journal reported that Kotick, the longtime CEO of the company, knew about sexual misconduct against a former employee at one of the company-owned studios back in 2016-2017. The wire claimed that Kotick received mail from the lawyer of the victim back in July, but failed to inform the board about the incident and attempted to find an out-of-court settlement with the complainant. The report also claimed that Kotick kept the board in dark with multiple such allegations and watered down the ones that he did inform. As a result, an employee advocacy group, A Better ABK tweeted, "We have instituted our own Zero Tolerance Policy. We will not be silenced until Bobby Kotick has been replaced as CEO and continue to hold our original demand for Third-Party review by an employee-chosen source. We are staging a Walkout today. We welcome you to join us." According to reports, more than 150 employees have joined the walkout in person till now while many have joined remotely. Another such allegation against the company followed shortly after Jennifer Oneal, who was appointed as the joint head to replace Brack, resigned earlier in November leaving a scathing account of mistreatment and discrimination against the company and the management. Oneal, who was a homosexual woman, bashed the company's treatment of women on mail, claimed the report. After the walkout was announced, a spokesperson from the company told Engadget, "We are fully committed to fostering a safe, inclusive and rewarding environment for all of our employees around the world. We support their right to express their opinions and concerns in a safe and respectful manner, without fear of retaliation." In the meantime, Strategic Organizing Center (SOC) Investment Group, holders of 4.8 million company shares have written a strongly worded mail to the board. The letter reads, "In contrast to past company statements, CEO Bobby Kotick was aware of many incidents of sexual harassment, sexual assault, and gender discrimination at Activision Blizzard, but failed either to ensure that the executives and managers responsible were terminated or to recognize and address the systematic nature of the company's hostile workplace culture." "Activision Blizzard needs a new CEO, board chair (Brian Kelly), and lead independent director (Robert Morgado) with the expertise, skillset, and conviction to truly change the company's culture," said the group's executive director, Dieter Waizenegger. However, the resignation of the long-term CEO remains in doubt as he has been the spearhead for the company for more than two decades and has contributed a lot to the growth of the company. As per reports, the board is still confident about Kotick's ability to lead the company in a better direction.