As Sega confirmed in a recent announcement, the publisher will cut more than 200 jobs in Europe. In addition, Sega announced its separation from the “Company of Heroes” creators Relic Entertainment.
In recent weeks, reports of austerity measures and layoffs at leading publishers have continued seamlessly. For example, reduced Xbox and PlayStation their workforce by around eight percent. Electronic Arts, on the other hand, recently announced the dismissal of 670 employees.
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Another publisher that will take the red pencil is Sega. As the “Sonic” makers announced, the company will cut 240 jobs in Europe. The “Alien Isolation” makers at Creative Assembly and Sega Europe are particularly affected by the layoffs. On a smaller scale, Sega Hardlight employees will also be laid off.
Two Point Studios and Sports Interactive, on the other hand, are apparently spared from the layoffs. As Sega emphasizes, the cost-cutting measures were necessary in order to be able to respond to the current challenging developments within the industry.
Sega Europe explains the layoffs
Commenting on the measures, Jurgen Post, head of Sega Europe, said: “I would like to sincerely apologize for the concern and understandable discomfort this news will cause. Especially for those who are directly affected. These decisions were incredibly difficult to make and followed careful consideration and consultation with leadership teams across the company.”
“Change is necessary to secure the future of our games business and ensure we are able to continue to provide the best possible experiences for our players. We need to slim down, focus on what we do well and position ourselves as best as we can for the road ahead.”
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“To achieve this, we must respond to the changing economic landscape and the challenges we face in developing our products and bringing them to market,” continued Post.
Relic Entertainment becomes independent
As can be seen from Sega's official statement, the layoffs in Europe will not stop. The publisher also announced that the developer studio Relic Entertainment (“Company of Heroes”) was sold. The studio acquired its independence through an external investor.
“Sega is working closely with Relic on this transition and we wish them all the best for the future,” said Jurgen Post on the separation of Sega and Relic Entertainment.
On the official X channel, the studio emphasized that the path to independence will not change the planned support for titles such as “Company of Heroes 3”.
After the bankruptcy of its then parent company in 2013, Relic Entertainment and the “Company of Heroes” license became the property of Sega.
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