Sega of America Announces 61 Job Cuts

Update: The Allied Employees Guild Improving Sega has responded to the news on social media, linking the layoffs to the previously announced plan to phase out temporary workers by February 2024. The union had been in talks since November to negotiate the situation and confirmed the 61 job cuts. According to the union, their efforts have resulted in saving more than double the number of jobs and offering severance packages to temporary workers. However, they believe the layoffs will negatively impact working conditions and the quality of future games. The union remains committed to fighting for their coworkers and the betterment of the industry, standing in solidarity with those affected by mass layoffs across the gaming sector. Original story: Sega of America is expected to lay off 61 employees on March 8, as revealed by a WARN notice filed in Orange County, California on January 8. The layoffs will affect two locations on the Irvine campus, with 12 job cuts in one office and 49 in another. This move is part of the company's restructuring efforts, with Sega Sammy having reported a significant increase in net sales for the first half of its financial year. The company has also made recent acquisitions, including Rovio, and has undergone structural reforms, resulting in layoffs in other units, such as the cancellation of Creative Assembly's Hyenas and redundancies at Relic Entertainment.