Sega's Relic Entertainment faces layoffs amid restructuring

Sega's subsidiary, Relic Entertainment, has unfortunately announced that it has been hit with a round of layoffs, affecting 121 employees. This is part of a wider trend of layoffs that have been occurring across various sectors in recent months. It is worth noting, however, that Sega's announcement comes amidst the company's ambitious roadmap plans.

During its financial presentation for the 2023 fiscal year, Sega revealed that it intends to launch at least 12 non-mobile games, including titles such as Sonic Origins Plus, Endless Dungeon, and the Like a Dragon Gaiden spinoff. Additionally, the creator of Sonic the Hedgehog is hoping to sell up to 12 million units during the year, thanks to its upcoming slate of titles. It is also interesting to note that Sega is planning to acquire the developer of Angry Birds, Rovio, as well. Despite Sega's promising 2023 financial outlook, this recent announcement may dampen its narrative.

Relic Entertainment and SEGA Europe released a statement announcing that they have laid off 121 employees in their studio. According to Relic, this decision was made in order to restructure the organization, "to ensure maximum focus" on its core franchises. The company also stated that it will continue to support and invest in Relic's titles, including the upcoming console version of Company of Heroes 3. It remains to be seen how much this round of layoffs will impact the studio, but Relic is confident that it will be in a "position of strength to continue delivering outstanding experiences" following the restructuring. At present, the company's main focus is on supporting the departing employees.

However, Sega is not alone in announcing layoffs in recent times. In January, Microsoft also laid off several employees from 343 Industries and Xbox, as well as other areas of the business. Following suit, companies such as EA, Twitch, Unity, and Ubisoft have also had to let go of their staff. This indicates that Sega is unlikely to be the last gaming company to make redundancies.

Despite the unfortunate news, Sega has had a promising few months, especially with the success of titles like Sonic Frontiers, which sold over 3.5 million units earlier this month. With upcoming releases such as Persona 6, Total War: Pharaoh, and many more, Sega aims to maintain its growth ambitions for 2023. It remains to be seen whether Relic Entertainment will continue to play a significant role in Sega's plans for the future.