By Michelle Chapman

The president of Activision's Blizzard Entertainment is stepping down weeks after the maker of video games like “World of Warcraft” and “Call of Duty,” was hit with a discrimination and sexual harassment lawsuit in California as well as backlash from employees over their work environment.

The state sued Activision Blizzard Inc. last month citing a “frat boy" culture that has become “a breeding ground for harassment and discrimination against women."

The lawsuit alleges that female employees face constant sexual harassment, that few women are named to leadership roles and when they are, they earn less salary, incentive pay and total compensation than male peers.

Activision Blizzard CEO Bobby Kotick sent a letter to employees after the lawsuit was filed, stating that the company was “taking swift action to be the compassionate, caring company you came to work for and to ensure a safe environment."

“There is no place anywhere at our Company for discrimination, harassment, or unequal treatment of any kind," he wrote.

On Tuesday it was announced that J. Allen Brack was leaving the company in a letter from Activision Blizzard President and COO Daniel Alegre to employees. Brack joined Blizzard in January 2006 and held multiple leadership roles before being named president in October 2018, according to the company's website.

The complaint alleges that as far back as 2019, Brack had been told that employees were leaving the Santa Monica, California, company because of rampant sexual harassment and sexism. It also alleged employees had approached the company's human resources department with complaints of unfair pay and assignments.

The complaint says that despite the numerous complaints to human resources personnel and executives including Brack, no effective remedial measures were taken.

The lawsuit also claims that Brack only gave verbal counseling, deemed a “slap on the wrist," to Alex Afrasiabi, former senior creative director for “World of Warcraft." Afrasiabi is accused in the complaint of engaging in blatant sexual harassment and the state alleged that the company refused to deal with it because of his position.

Jen Oneal and Mike Ybarra were named co-leaders of Blizzard, sharing responsibility for development and operational accountability for the company, it said Tuesday.

Oneal served as executive vice president of development at Blizzard, while Ybarra served as executive vice president & general manager of platform and technology.

“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," Alegre wrote.

Updated on August 3, 2021, at 11:15 a.m. ET with additional details.

Share:
More In Business
Is U.S. Restaurants’ Breakfast Boom Contributing to High Egg Prices?
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
Trump Administration Shutters Consumer Protection Agency
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
Load More