Sega has announced sweeping layoffs that affect Sega Europe, Total War maker Creative Assembly, and Sonic Dream Team developer Hardlight.
Sega Europe boss Jurgen Post sent staff an email this morning notifying them of the cuts, as well as the sale of Company of Heroes and Dawn of War developer Relic Entertainment. The layoffs affect approximately 240 roles across Sega Europe, Creative Assembly, and a “small number” at Hardlight. Football Manager developer Sports Interactive and Two Point Hospital developer Two Point Studios, also owned by Sega Europe, were not mentioned.
Sega did not disclose how many staff at each studio were affected, but did issue IGN an additional update on the status of Creative Assembly's upcoming projects: "Creative Assembly continues to have multiple projects in development with Total War and a new unannounced project.”
Post said the sale of Relic had been agreed and the studio is transitioning to become independently run, which means it is no longer part of Sega. “Sega is working closely with Relic on this shift, and we wish them the best for the future,” Post said.
Relic issued a statement of its own, saying it had become independent with the help of an unnamed external investor. It added that work on updating real-time strategy game Company of Heroes 3 continues, and indeed it will continue to support its games.
Important Update from Relic Entertainment pic.twitter.com/nCcF8olDaC
Post then apologised to staff at Sega Europe, and insisted the cuts were necessary “to secure the future of our games business”.
“Before I go on, I want to sincerely apologise for the worry and understandable distress this news will cause, particularly for those directly affected. These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business. Change is necessary to secure the future of our games business, and to ensure that we are well placed to deliver the best possible
Read more on ign.com