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Sega of America plans to lay off 61 workers

A California WARN notice revealed the publisher’s plans.


Sega of America plans to lay off 61 employees in March, according to a California WARN (Worker Adjustment and Retraining Notification) report. Eurogamer and X user @WhatLayoff first reported on the government notice, which lists two separate job cuts classified as “layoff permanent” on March 8. It’s the latest chapter in a year-plus of brutal job cuts in the tech and gaming worlds.

California’s WARN Act, passed in 1988, requires employers to provide 60 days’ notice for upcoming layoffs — allowing the affected workers time to prepare. It applies to companies with at least 75 full-time or part-time workers and covers layoffs of 50 or more people within 30 days. It isn’t clear precisely how many workers Sega of America employs.

The WARN report lists separate layoffs (one of 12 and another of 49 workers) at two Irvine, CA-based Sega of America offices. The job cuts both have a “notice” date of January 8, and the reports were “processed” by California on January 29 with “effective” dates of March 8.

The Communications Workers of America (CWA) filed an unfair labor practice complaint against Sega in November after the publisher allegedly said it would lay off 80 unionized workers. At the time, the organization said Sega presented the proposal in a captive audience meeting, describing the circumstances as “a clear case of bad faith bargaining.”

The Allied Employees Guild Improving SEGA (AEGIS-CWA), the union representing Sega workers in the US, wrote on X Tuesday that the company announced the latest plans “a few months ago,” suggesting the layoffs posted in the WARN notice are part of the same roadmap. The union said Sega plans to outsource quality assurance and some localization work “in a move that would significantly impact our workforce.”

Sega hasn’t publicly confirmed the layoffs. Engadget reached out to a company representative, and we’ll update this article if we hear back.

The layoffs come less than two months after Sega said it would refresh its classics Crazy Taxi, Jet Set Radio, Shinobi, Golden Axe and Streets of Rage. Eurogamer notes the company’s Like a Dragon: Infinite Wealth, which launched last week, has been a high mark for the publisher.