As of June 2018 Blizzard employeed around 9,800 people[1]. So this layoff represents a turnover of ~8% of staff. Depending on Blizzard's base turnover rate, which I couldn't find, they may be better or worse overall than the industry turnover rate of ~15% [2]
Blizzard was considered one of the best companies to work for in 2018, at least by Forbes, though you can absolutely find examples of poor working conditions and unreasonable expectations as is the unfortunate par for the course in the games industry.
The 78 person studio mentioned in the article (Z2Live) was a second degree acquisition (acquired by King who was then acquired by Blizzard), with their last release being in 2012[3].
[1] https://www.forbes.com/companies/activision-blizzard/#2a4ede...
[2] https://www.informationweek.com/strategic-cio/team-building-...