Blizzard Entertainment, a division of Activision Blizzard, a US-based video publisher, announced it was laying off its 600 employees.
The publisher of "World of Warcraft" and other popular videogame said 90% of the employees to be sacked would not be from the division related to game development.
The company said in a statement that the World of Warcraft development team will not be impacted.
Blizzard chief executive Mike Morhaime was quoted by Reuters as saying that constant evaluation of teams and processes is necessary for the long-term health of any business.
Many game companies have been lately cutting costs as they feel the heat from free games available on the Internet, according to industry analysts.
"However, as Blizzard and the industry have evolved we’ve also had to make some difficult decisions in order to address the changing needs of our company," added Morhaime.
These developments would neither affect the game development nor their release, the company said.
