Sega, a division of Sega Sammy (OTCMKTS:SGAMY), has announced layoffs as the video game company sells off one of its development studios.
Sega has announced that 240 employees will be affected by this latest round of layoffs. The company says that this will include workers at its Sega Europe, Creative Assembly and Sega Hardlight divisions.
The latest news notes that Sega Hardlight is going to be the group least affected by these layoffs. Instead, Sega Europe and Creative Assembly will bear the brunt of the cuts.
Sega Europe head Jurgen Post said the following about the layoffs in a letter obtained by NintendoLife:
“We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market.“
In addition to this, Sega is selling Relic Entertainment. This will have it acting as an independent game developer with support from an unnamed investor.
Sega Joins Video Game Layoffs
Sega joins a growing list of video game companies that have announced layoffs recently. That includes Nintendo (OTCMKTS:NTDOY), which just announced job cuts for its product testing team today.
Other major developers have also announced job cuts recently. Sony’s (NYSE:SONY) PlayStation and Microsoft’s (NASDAQ:MSFT) Xbox are among these, as are other development studios.
SGAMY stock isn’t seeing much movement today.
Investors will want to keep reading for even more of the latest stock market news.
We have all of the biggest stories worth reading about on Thursday! A few examples include what’s going on with AMC Entertainment (NYSE:AMC), QuantumScape (NYSE:QS) and MicroStrategy (NASDAQ:MSTR) stock today. All of that news is available at the following links!
More Stock Market News for Thursday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
