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.