In a letter from Mike Morhaime, we learned that Blizzard is in the process of cutting a number of active positions throughout the company. The reason stated for this mass amount of job loss was to better maintain the health of the company. As a result of certain departments becoming overstaffed, they have decided to scale down these departments to allow for larger growth in others.
These job cuts come about a year after Activision eliminated 500 jobs when they shut down the studios responsible for the "Guitar Hero" franchise. While no developers that work on World of Warcraft will be affected, this job loss could in part be due to the near 1 million subscriber decline in World of Warcraft this past year.
Morhaime did emphasize that Blizzard is still committed to shipping multiple games this year. There is exciting news to be had in the coming weeks with Diablo III's release date as well as the Mists of Pandaria press tour. It's always sad to hear news of people losing their jobs and our hearts go out to those who are affected.