Sega of America will be laying off 61 employees next month, as confirmed by the Employment Development Department of the State of California. Read on to learn more about the situation.
Sega of America to Layoff 61 Employees Next Month
Layoffs Confirmed for Californian Sega Office
2024’s video game industry layoffs continue with news of Sega of America laying off 61 employees next month. This news was spread by the issue of a WARN (Worker Adjustment and Retraining Notification Act) notice – a local California law that requires employers to notify employees 60 days in advance of major layoffs.
As confirmed by Eurogamer with the Employment Development Department of the State of California, two separate layoffs will take place on March 8, 2024, affecting groups of 12 and 49 staff.
Since the news came by way of public notice, Sega of America has yet to confirm these layoffs. It is currently unclear if these layoffs will extend to Sega offices outside of California.
QA and Localization Outsourcing Cited as Reason for Layoffs
The Allied Employees Guild Improving Sega – a union better known as AEGIS – took to social media to clarify the reasons for said layoffs. According to AEGIS, the layoffs relate to a previously announced plan to outsource the company’s QA and localization efforts.
These layoffs follow Sega’s recent success with its publishing of Like A Dragon: Infinite Wealth and are among the latest in the industry for 2024. Eidos Montreal also reported massive layoffs earlier this week following the cancellation of a Deus Ex game that’s been in development for two years.
Sources:
Embracer cancels Deus Ex game in development for two years
Sega of America to lay off 61 staff next month
