Sega of America Drops the Hammer: 61 Employees Facing the Axe

In a recent turn of events, Sega of America has issued a grim warning to its workforce, signaling the impending layoff of 61 employees slated for March 8, 2024. The revelation, unearthed through California's WARN Act, a mandatory protocol for employers to notify affected staff 60 days prior to mass layoffs, was first shared by the vigilant @WhatLayoff on Twitter.

The distressing notice discloses that 49 employees in one of Sega's Irvine offices and 12 in the other are set to bear the brunt of the layoffs, leaving both offices grappling with an uncertain future.

Curiously, the announcement provides no insights into the rationale behind this sweeping employment decision or which specific departments within the company will be affected. The ambiguity surrounding the circumstances only adds to the sense of uncertainty and unease among Sega's workforce.

As fate would have it, the distressing news comes hot on the heels of Sega's recent game release, Like a Dragon: Infinite Wealth, developed by the acclaimed Ryu Ga Gotoku Studio. The very individuals impacted by the layoffs played a crucial role in the success of this latest game.

Speaking of success, Like a Dragon: Infinite Wealth has garnered praise with "very positive" reviews on Steam, amassing nearly 50,000 peak concurrent users, as reported by SteamDB. The irony of the situation is palpable, considering the recent intense promotional efforts put forth by the Sega of America team for this title.

This disheartening development is just the latest ripple in a wave of mass layoffs and closures that have recently engulfed the gaming industry. Industry giants and smaller players alike have not been spared, with Microsoft, Riot Games, Sony, Bungie, Epic Games, Tencent, Amazon, Frontier, Team17, and several Embracer studios (including Eidos Montreal, Volition, Cryptic Studios, New World Interactive, Free Radical, 3D Realms/Slipgate Ironworks, and Lost Boys Interactive) all witnessing significant workforce disruptions.

It's worth noting that Sega faced a similar situation in 2023 when an undisclosed number of employees were let go at its European arm, following the cancellation of various projects, including the multiplayer shooter "Hyenas." The gaming industry finds itself in one of the most turbulent periods in recent memory, with the human cost becoming increasingly apparent.