Sega has sold off Warhammer 40,000: Dawn of War and Age of Empires IV developer Relic Entertainment, and a number of layoffs have also impacted other Sega studios.
According to GamesIndustry.biz, which cites a staff email sent by Sega Europe head Jurgen Post, 240 jobs are being cut across Total War studio Creative Assembly and Sonic Dream Team developer Sega Hardlight, as well as Sega Europe in general.
This is in addition to the sale of Relic Entertainment, which, according to a post on its official X (formerly Twitter) account, will revert to being independently-run. Relic’s games, however, will continue to be supported, including Company of Heroes 3.
In the staff email sent by Post and seen by GI.biz, Post apologizes for the “worry and understandable distress” caused by the layoffs and the sale of Relic.
Like many other studios, Post says Sega is “respond[ing] to the changing economic landscape”, and that the studio is facing “challenges” in its development and publishing processes.
This isn’t the first we’ve heard about a downturn in Sega’s fortunes this year. In February, the company announced its profits had dropped sharply due to “weak” sales of certain games, and in January, Sega said it would lay off 61 American employees by March.
In September last year, meanwhile, Sega canceled the live-service shooter Hyenas, which was being worked on by Creative Assembly, one of the studios hit by layoffs today.
These layoffs also take place against the backdrop of a wider wave within the industry, with layoffs occurring at major studios like Electronic Arts, Sony, and Microsoft, among many others.
Smaller studios have also been affected, with outfits like Deck Nine, Disco Elysium studio ZA/UM, and Wayfinder developer Airship Syndicate also hit by layoffs in recent months.
It’s unlikely we’ve seen the last of this layoff wave. Stay tuned for more info on this and all other things industry-related.
