Activision Publishing laying off employees at internal studios

Activision Publishing has laid off a number of employees across several internal studios and companies within the last few days, as reported by Kotaku.

People at Infinity Ward, Treyarch, Beenox and other internal studios had to go, and their corporate office is also affected. Kotaku claims to have heard that 5% of the workforce have been impacted, but other divisions such as Blizzard Entertainment and MLG were not. Infinity Ward apparently also had to lay off 20 people as well, this coming only days after Activision's financial call in which they expressed disappointment at Infinite Warfare's reception.

Activision Blizzard as a company had booked a very good year financially, however, surpassing their revenue targets for 2016. In an official statement the company wrote that they are "realigning our resources to support our upcoming slate and adapt to the accelerating transition to digital, including opportunities for digital add-on content."

Does this mean big trouble for Activision, or are these just cuts that have to happen?