Sega cutting 300 jobs as it prepares for digital, non-console future

Around 300 staff are to be offered early retirement following plans to completely restructure Sega’s business.

Local organisations managing packaged game software in Western markets will be streamlined”, the company has said, with its San Francisco already confirmed for closure.

Sega intends to alter operations to focus on mobile and online PC games, which it deems to be its growth areas, as well as its Sonic and merchandising businesses.

The changes are a result of a business analysis conducted by the Group Structure Reform Division, which was formed last May and tasked with improving management efficiency, profitability and restructuring the business.

Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or consolidated and downsized, while at the same time personnel will be repositioned in digital games and growth areas of Group mainly as development personnel, in order to establish a structure which can constantly generate profits,” Sega said.

The decision comes despite the success of Alien: Isolation – which admittedly was somewhat offset by the catastrophic failure of both Sonic Boom: Rise of Lyric and Shattered Crystal.