Sega lays off 240 employees in Europe and will sell Relic Entertainment
Sega has confirmed that it will lay off employees at its European studios and sell Vancouver-based developer Relic Entertainment in an effort to cut costs.
The details:
Sega Sammy announced in a business update that 240 employees will be laid off across Europe, with cuts coming from Total War developer Creative Assembly, Sega Europe, and Hardlight after an internal review.
In a post on X, Relic Entertainment confirmed it will become an independent studio backed by an "external investor". Sega has announced that ownership of the developer will be transferred to a holding company established by UK-based investor Emona Capital LLP.
As reported by Eurogamer, Sega Europe head Jurgen Post apologized to employees in an email for the layoffs being made public before they were personally informed. "Due to the nature of this announcement and our legal obligations in Japan, we were unable to share any detail with you until now," Post wrote. "That is far from ideal and means some of you may have read about this in the media or via social networks before seeing this email. If that is the case, I'm sorry. I want to sincerely apologise for the worry and understandable distress this news will cause, particularly for those directly affected.”
Sega has experienced several layoffs in the last year, with significant cuts being made at Creative Assembly and Relic in May and September, respectively. Its American branch has also recently laid off more than 10% of its workforce.
Other layoff news:
Microsoft Gaming CEO Phil Spencer has expressed concern about the "lack of growth" in the gaming industry following recent layoffs.
Smilegate Barcelona has reportedly closed its doors and laid off all of its employees, just four years after it opened.
