Sega of America Confirms Layoffs


Sega of America has reported that it has laid off around 30 employees, confirming rumors that surfaced yesterday.

“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,” a Sega representative announced in an e-mail to Edge Online. “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.”

The Sega rep confirmed that the layoffs amounted to “around 30” employees, but declined to go into specifics about what departments they effected, and whether they put the release of any future games in limbo. IGN’s original report of the layoffs indicated that the layoffs were centered on the company’s San Francisco office, which includes both publishing and development staff.

The layoffs at Sega are the latest in what has become an disturbingly regular trend: the last two months alone have seen layoffs announced at everywhere from large-scale publishers like Electronic Arts, Microsoft and THQ to developers like TimeSplitters creators Free Radical and Age of Conan devs Funcom. Tough times out there, for big and little guys alike. Gamasutra spotted a Facebook update by a former Sega staffer wishing the newly unemployed the best as they moved “onward” – we wish them the same.

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