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Confirmed: Sega Cuts Staff

Kris Graft's picture

By Kris Graft

January 21, 2009

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Sega of America is the latest games maker to issue layoffs, the company confirmed to Edge Tuesday.

Following rumors that 30 employees have been laid off, a rep for Sega said in an e-mail, "Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success."

The rep confirmed that "around 30 people" were laid off.

"The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavors."

Sega of America's cuts are the latest in a long string of layoffs across the games industry: EA, Crystal Dynamics, Free Radical, Midway, Factor 5 and Funcom are just a few who have laid off workers in recent months.

munat's picture
On August 18th munat said:

we must take steps to reduce our cost structure and ensure long-term success." http://www.crazypurchase.com

Tina_Russell's picture
On January 21st Tina_Russell said:

Don't worry. When Sega gets hit, their jobs just go scattering everywhere. All they have to do is run around for a bit, picking them up. (They also get a brief, flashing grace period of invincibility. But, watch out for spikes!)

Jesse_Dylan_Watson's picture
On January 21st Jesse_Dylan_Watson said:

I know the economy sucks, but I hate to see people using it as the catch-all excuse for firing folks. It's a pretty common practice in the game industry to lay people off after a title is finished. We're in a recession, but that's sort of how capitalism works, with big highs and low lows; we've had recessions before, and this isn't the worst of them.

I just hope they keep enough staff around here to translate Yakuza 3 and the Yakuza game set in feudal Japan. Sega, pleeeeeeeease!