We are still at the point with games industry layoffs where we have multiple different announcements coming in the same day. Today, we have learned that Sega made layoffs at Sega Europe, Creative Assembly, and Hardlight. All told, there were approximately 240 employees laid off from these three studios, with only a "small number" of layoffs hitting Hardlight.
Despite the layoffs, Sega says Creative Assembly continues to "have multiple projects in development with Total War and a new, unannounced project." Creative Assembly is best known as the studio behind the Total War games. They were working on a new first-person shooter, Hyenas, before Sega cancelled Hyenas in September 2023. As for Hardlight, they are best known as the studio behind Sonic Dream Team.
In addition to the layoffs, Sega flat out sold off Relic Entertainment. Relic management agreed to the split and will transition to becoming an independently run development studio. Sega and Relic are working closely together to make this split as easy as possible for both parties. Relic is best known for developing several entries for the Company of Heroes series, the first two Homeworld titles, and several Warhammer 40,000 titles.
Sega Europe boss Jurgen Post told employees at Sega Europe that the cuts were needed in order "to secure the future of our games business." Post also issued an apology to employees over the worry and distress that these layoffs will cause. He continues on to note that they "need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead." For Sega that apparently means that they "need to respond to the changing economic landscape and the challenges we're facing in the way we develop our products and bring them to market."
Some Sega employees apparently found out about the layoffs before management had informed them. Post also apologized to those employees that found out this unfortunate news through social media and news outlets. As for those who have been laid off, Sega notes that they will "provide support(...) where we can, including severance pay, career support, and access to independent and internal guidance."
In very related news, development studio Certain Affinity announced that they laid off 25 US-based employees. The biggest area impacted by these layoffs are with the "teams running our business operations." Certain Affinity's statement says that this is the first time in their 17 year history that they have had to make any layoffs. As of 2021, Certain Affinity was said to employ over 250 people.
There are multiple factors underlying this decision to do a layoff for the first time in our 17+ year history. Most significant is an industry-wide slow down in the funding of new lead and co-development projects and the reluctance of third party investors to fund games or game companies. This has made it exceptionally difficult to sign new work or secure other forms of funding.
Our current focus is on our team and the well-being of those most impacted, whom we are supporting with severance pay and benefits continuation. We are also making their vested awards under our Stock Equity Plan portable so they may benefit from the company’s success in the future.
Our current focus is on our team and the well-being of those most impacted, whom we are supporting with severance pay and benefits continuation. We are also making their vested awards under our Stock Equity Plan portable so they may benefit from the company’s success in the future.
