Blizzard Entertainment has been hit with layoffs at its esports team. Although the company recently reported record quarterly revenues, the future of the Overwatch League is currently uncertain, with sources worrying that the entire division might be closed.

Several esports teams, which are parts of Overwatch and Call of Duty leagues, reportedly owe Activision Blizzard up to $420 million. These fees were previously paused due to the pandemic.

The so-called “Diversity Space Tool,” which was recently introduced by Activision Blizzard, has drawn criticism from players and developers. Some of the Overwatch creators have also denied any connection to this technology.

Activision Blizzard chief compliance officer Frances Townsend resigned from the company’s women’s network. On August 6, Kellogg and T-Mobile suspended sponsorship of the Overwatch League. Coca-Cola and State Farm are “reassessing” their partnerships with Activision Blizzard.