Sega restructures US, European operations, lays off 73

Sega West President Mike Hayes has told IndustryGamers that the company is currently implementing a major restructuring of its North American and European operations. The human cost will be 73 jobs (36 in San Francisco, 37 in London), which represents about 12 percent of Sega West's workforce. It's worth noting that these figures are separate from the recent shutdown of Sega Studios San Francisco.

Sega's San Francisco office will now focus on digitally delivered products for mobile, consoles and PC while Europe will continue focusing on "traditional package goods." Hayes stressed this is "very much administrative reorganization, because clearly we want to be very successful with digital globally. Likewise, we want to continue to be successful with traditional goods." So, to recap, instead of Sega's American and European operations running in parallel, working on retail games in addition to digital titles, each now has a specific market to focus on. Whether this strategy will result in better products and increased sales for the one-time gaming giant remains to be seen, but at least Sega's not sitting idly by.

This article was originally published on Joystiq.