Sega of America Announces Layoffs
Sega of America has announced it will lay off 61 employees on March 8, according to a WARN notice filed in Orange County, California. The layoffs will affect two locations on its Irvine campus, with 12 employees from one office and 49 from another facing job cuts. This move is part of Sega's previously announced plan to "phase out" temporary workers by February 2024.
The Allied Employees Guild Improving Sega (AEGIS), a union formed by Sega of America workers in July last year, has been in discussions with the company since November to negotiate the layoffs. Despite their efforts, which resulted in more than double the number of saved jobs and severance offers for temporary workers, the union expressed concerns over the potential negative impact on working conditions and the quality of future games.
The layoffs at Sega of America are part of a broader trend across the gaming industry. Sega Sammy's recent financial reports showed significant sales growth, bolstered by the acquisition of Rovio in April 2023 for 706 million EUR. However, other Sega units have also experienced layoffs in recent months, including the cancellation of Creative Assembly's Hyenas and 121 redundancies at Relic Entertainment.
Source: GamesIndustry.biz