Square Enix has slashed its net income forecast for the fiscal year ending March 31, 2010, from 15 billion yen to ten billion yen ($109.5m/£66m).

The firm said that its revised forecast was the result of “special factors” that arose in the first quarter. The company cited “an extraordinary loss caused by premium severance payments associated with career change support programmes” in Square Enix and subsidiary Taito, as well as acquisition and APA expenses of approximately two billion yen.

According to Andriasang, the company has allocated two billion yen to cover voluntary retirement programmes.

In late September it was reported that Square Enix Japan was likely to cut 200-300 jobs, with most of the layoffs thought to be affecting Taito employees.

We’ve requested comment from Square Enix on this report.