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Sega to sell leftover entertainment.  240 employees will be laid off

Sega to sell leftover entertainment. 240 employees will be laid off

Sega is selling “Company of Heroes” developer Relic Entertainment and laying off 240 employees across its teams in Europe and the UK, including Creative Assembly and Sega Hardlight.

The cuts make Sega the latest video game company to trim its staff in 2024.

In a document filed with the Tokyo Stock Exchange on Thursday, Sega wrote: “The business environment surrounding the consumer region, especially in the European region, is changing rapidly, including the reactionary decline from stay-at-home demand under Covid-19 and the economic downturn due to… inflation etc., and profitability has been reduced.To quickly adapt to these changes in the environment and improve profitability, we have decided to implement structural reform in our European bases and are considering reviewing the medium-term lineup, optimizing fixed expenses and improving investment efficiency, reviewing the development/sales structure and management system, and have now decided Perform the following three actions.

As a result of the sale, Relic will become an independent studio backed by an outside investor, and will continue to work on its existing titles, including “Company of Heroes 3.”

Relic released a statement on With new content and features that our community has been requesting.”

News of Sega's layoffs and Relic's sale comes on the same day Bloomberg reported More than 100 Sega America workers have ratified the first union contract at a major gaming company, with provisions for annual wage increases and notices before layoffs.