(WSJ) More than three dozen employees have exited Activision Blizzard Inc., while up to 44 others have been punished as the company addresses allegations of misconduct.
The move by Activision happened after shareholders, business partners, and staff called for more accountability amid claims of sexual harassment and misconduct at the company.
Activision is said to have obtained about 700 reports related to employee concerns of misconduct, a figure which the company spokeswoman Helaine Klasky disputes. Klasky says some allegations were mere comments on social media and benign workplace issues.
CEO Bobby Kotick had initially dismissed claims of misconduct at Activision, which is believed to touch even the managers of the company.
Activision also faces another regulatory scrutiny from the US Securities and Exchange Commission and the California Department of Fair Employment and Housing over its culture and how it tackles harassment claims.
Mr. Kotick, who the investors still believe is the right executive to lead the company, had previously said he would resign if he fails to address the alleged cultural problems. Through the board, the company formed a “workplace responsibility committee” in November to tackle the issues.
ATVI: NASDAQ is down -0.35%.