Sega Cuts 240 Jobs, Sells Relic, and Shakes Up UK Studios

Sega has embarked on a major restructuring of its Western operations, which includes the sale of Relic Entertainment and the elimination of approximately 240 jobs across various divisions, including Sega Europe, Creative Assembly, and Sega HARDlight. Relic Entertainment, the developer behind the Company of Heroes and Dawn of War franchises, will transition to an independent studio, thanks to an investment by Emona Capital LLP.

The layoffs primarily impact Creative Assembly, known for the Total War series, and Sega Europe, but a smaller number of roles will also be affected at Sega HARDlight, the studio behind several Sonic the Hedgehog mobile games. Sega has assured fans that ongoing support for its titles, such as the upcoming Company of Heroes 3, will not be interrupted. Despite the restructuring, Relic Entertainment has expressed a continued positive relationship with Sega, stating they will remain friends and colleagues.

Sega Europe's head, Jurgen Post, expressed regret for the distress the layoffs have caused, emphasizing that the measures were necessary to secure the future of Sega's gaming business. The layoffs and sale are reflective of broader industry trends, with the gaming sector experiencing sluggish growth and increasing costs. In addition to the staff reductions, Sega also announced it would be writing down work-in-progress titles, leading to a financial loss of approximately 5.6 billion yen ($31 million). This series of decisions by Sega is part of a wider trend, as the gaming industry has seen around 8,000 job losses in 2024 to date.