Shackpets | Available on iOS and Google Play Store

Layoffs Strike Sega of America (Updated)

Update: Sega has confirmed that "around 30 people" were laid off from Sega of America, though it offered no details as to what divisions were affected by the cuts.

"Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success," a Sega representative informed Edge Online.

"The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavors."

Original Story: Sega of America is the latest publisher to undergo layoffs as a result of current economic conditions, an inside source has informed IGN. 30 employees were laid off today, the source claims. Exactly what divisions the layoffs hit and the impact they will have on the publisher's operations are not yet known.

Sega has yet to offer a formal statement on the matter. The company is planning to release several titles in the coming months, including, but not limited to, House of the Dead: Overkill (Wii), Sonic and the Black Knight (Wii), Madworld (Wii), Stormrise (PC, PS3, 360), Alpha Protocol (PC, PS3, 360), and Empire: Total War (PC).

Furthermore, Sega Europe recently indicated that Gearbox's Aliens: Colonial Marines (PC, PS3, 360) could hit within the first three months of 2009, though Sega of America has yet to offer any confirmation on the matter.

Chris Faylor was previously a games journalist creating content at Shacknews.

Filed Under
From The Chatty
  • reply
    January 20, 2009 2:27 PM

    I get nervous as I see all these game companies folding and people getting layed off left and right.

    • reply
      January 20, 2009 4:35 PM

      Yes, but how much of the layoffs are from the end of the development cycle anyways? Typically come the holiday season and a couple months afterwards we see dev teams trim the fat of unneeded game testers and artists who were only brought on for the last big push to get a product out the door, while still retaining the core group of devs and support teams.

      • reply
        January 20, 2009 4:58 PM

        "Good job guys, thanks for everything - YOU'RE FIRED!"

        • reply
          January 21, 2009 7:17 AM

          but many of those layoffs typically are going in on a contract anyways

      • reply
        January 21, 2009 4:47 AM


        • reply
          January 21, 2009 3:48 PM

          You're supporting games that are intentionally left unfinished then.

Hello, Meet Lola