Segasubsidiary Relic Entertainment has announced that the studio has been hit with layoffs, impacting 121 employees. The announcement is the latest among a string of layoffs that have affected several sectors over the past few months. However, it’s interesting to note thatSega’s notice comes amid the company’s recently announced plans for its ambitious roadmap.
In its financial presentation for the 2023 fiscal year, Sega stated that it’s planning to release at least 12 non-mobile games which include titles likeSonic Origins Plus,Endless Dungeon, and theLike a Dragon Gaidenspinoff, among others. Further, the maker ofSonic the Hedgehogexpects to sell as many as 12 million units during the year thanks to its upcoming slate of titles. Incidentally,Sega is planning to acquireAngry Birdsdeveloper Rovioas well. While the company aims for a promising 2023 financial outlook, its latest announcement may dampen Sega’s narrative.
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In a statement, Relic Entertainment and SEGA Europe announced that the studio has laid off 121 of its employees. As per Relic, the decision is a result of the studio restructuring its organization “to ensure maximum focus” on its core franchises. The company further mentions that it will continue to support and invest in Relic’s titles, including theupcoming console version ofCompany of Heroes3. It remains to be seen how far the layoffs will impact the studio, although Relic believes it will be in a “position of strength to continue delivering outstanding experiences” following the reported restructuring. As of now, the company statement claims its current focus is on supporting departing employees.
However, Sega isn’t the only gaming company to have announced layoffs in recent times. Back in January,Microsoft laid off several 343 Industries and Xbox staffalong with a chunk of other areas of the business. In the months that followed, the likes of EA, Twitch, Unity, and Ubisoft similarly laid off their employees. This means that Sega is unlikely the last gaming entity to announce redundancies.
But despite the grim news, it’s been a promising few months for Sega, especially amid the success of its titles likeSonic Frontierswhich crossed 3.5 million units in salesearly this month. Now, withPersona6,Total War: Pharaoh, and a host of other entries on the way, Sega will look to keep its 2023 growth ambitions intact. In any case, whether Relic Entertainment will take a backseat in Sega’s plans for the months to come, only time will tell.
