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By Arghyadeep Dutta, 2:30 pm ET:
Video game studio Activision Blizzard Inc (ATVI)on Tuesday announced President J. Allen Brack of its subsidiary Blizzard Entertainment Inc is stepping down from the company.
The company said Blizzard Vice President Jen Oneal and Executive Vice President and General Manager Mike Ybarra will serve as co-leaders of the developer, effective immediately.
Although Activision did not officially explain the exit and said Brack leaves to “pursue new opportunities,” Blizzard noted Oneal and Ybarra would strive to make Blizzard the “most welcoming workplace possible” and help with “rebuilding your trust.”
The move comes after a lawsuit was filed against the company in July by the California Department of Fair Employment and Housing alleging “constant sexual harassment” against women and gender discrimination.
The lawsuit mentioned Brack was aware that employees were leaving because of sexual harassment as early as 2019.
The suit alleged the game developer has a “frat boy culture” with a “breeding ground for harassment and discrimination against women,” mentioning that women make up about 20% of Activision Blizzard’s workforce, yet few women reach top roles within the company.
The management change announcement comes less than a week after employees staged a walkout outside the office at Irvine, California, against management’s dismissive response to the lawsuit.
In an internal letter obtained by Bloomberg, Brack called the lawsuit “extremely troubling” and “completely unacceptable” in an email sent to the staff addressing the allegations. He said he would meet with employees to address how the company “can move forward.”
In another letter obtained by The Washington Post, the Chief Compliance Officer Frances Townsend called the allegations “factually incorrect, old and out of context.”
Last week Activision CEO Bobby Kotick announced that he has hired WilmerHale, a law firm, to conduct a review of the company policies and procedures and apologized for the company’s initial “tone deaf” response to the lawsuit.
“With their many years of industry experience and deep commitment to integrity and inclusivity, I am certain Jen and Mike will lead Blizzard with care, compassion, and a dedication to excellence,” Brack said.
Picture Credit: LA Times