It was revealed today that Sega is preparing to make mass layoffs that will impact as many as 240 employees across a range of studios. At the top of the table sits the likes of Sega Europe, Creative Assembly, and Hardlight. This news comes as confirmation is handed down that Relic Entertainment, known primarily for Company of Heroes, has secured an external investor and will become an independent-run studio, moving out from under Sega’s umbrella.
‘Change is Necessary’
Thanks to IGN, the world has seen an email sent to employees at Sega by Jurgen Post, part of the leadership team at Sega Europe. In the email, he wrote:
I want to sincerely apologise for the worry and understandable distress this news will cause, particularly for those directly affected. These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business. Change is necessary to secure the future of our games business, and to ensure that we are well placed to deliver the best possible experiences to our players going forward.
We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market.
It’s the same message that has been relayed by countless developers, publishers, and all manner of industry organisations over the last year or so. Since the start of 2023, almost 20,000 industry workers have been laid off around the world, for a multitude of reasons – but most of them boil down to a ‘need to streamline’ operations.
Sega has promised to support any employees impacted by these layoffs, and that severance packages, career support options, and guidance services will be made available. Post said, ‘I fully appreciate this means we are moving into a very unsettled phase, and I ask that we all look after each other through this difficult time.’
Other Sega studios and subsidiaries outside of Sega Europe, Hardlight, and Creative Assembly weren’t mentioned in the most recent update.
For more Insider Gaming coverage, check out the news that Nintendo is making layoffs
