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Sega Sammy to cut hundreds of jobs in 'Digital' restructure

Sinan Kubba, @sinankubba
January 30, 2015
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Sega Sammy is restructuring to prioritize "Digital Games," a reform that'll see it make job cuts including "soliciting voluntary retirement" for around 300 employees; 120 employees are due to be approached about voluntary retirement next month. Sega of America is among those to be hit by layoffs as it relocates from San Francisco to Southern California.

Sega Sammy plans to now pursue growth in smartphone and PC online gaming, an area that's seen rising results for the company in recent years. Despite the success of some packaged games such as million-seller Alien: Isolation, Sega Sammy's consistently reported favorable results from the likes of Phantasy Star Online 2, Puyo Puyo Quest and Chain Chronicle.



That refocus on what Sega Sammy's calling Digital Games will see other areas narrow down. However, the company said it's mainly reviewing its Amusement Businesses, which includes operations like the SegaWorld arcade centers and Joypolis theme parks in Japan.

In its annual report for fiscal 2014, Sega Sammy had 7,472 employees on its books.

As for Sega of America, the transition to Southern California will be complete by "early summer." It's currently unknown how many layoffs will result from the move, but Sega says neither the company's game release schedule nor its Sonic Boom TV series will be affected.

We should learn more about the restructuring when Sega Sammy reveals its third quarter financial results on February 12. The company says that the restructuring will see net income drop, but it's yet to adjust its forecasts. Currently, Sega Sammy is projecting a net profit of ¥4 billion for the year ending March 31, which converts to around $34 million.

[Image: Sega]










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