Activision Blizzard is struggling to attract and retain skilled workers, according to its annual report.
As spotted by Axios, the company suggested an outpouring of harassment allegations and litigation relating to workplace toxicity and misconduct has potentially had an "adverse effect" on its ability to attract and retain employees.
"We have observed labor shortages, increasing competition for talent, and increasing attrition. We are experiencing increased difficulty in attracting and retaining skilled personnel," said the company.
"For example, we observed a significantly higher turnover rate of our human resources function in 2021. Additionally, recent litigation involving the Company relating to workplace and employee concerns [...] and related media attention can be expected to have an adverse effect on our ability to attract and retain employees and has resulted in work stoppages."
The Call of Duty publisher said that if it cannot attract additional qualified talent or retain and utilize the services of key personnel, its business will be adversely affected.
Despite those labor concerns, Activision Blizzard said it had 9,800 employees as of December 31, 2021, compared to 9,500 the year prior.
Activision Blizzard is set to be acquired by Microsoft in a $68.7 billion deal but continues to come under fire for its handling of cultural and workplace issues, with QA staff currently attempting to unionize accusing the company of trying to "thwart" their efforts.