Square Enix makes massive layoffs to consolidate growth in Japan

Square Enix is ​​making massive layoffs today that could affect more than 100 people, along with broader steps to solidify its publishing organization and focus its development efforts in Japan.

Through public posts from former employees and confirmation from internal sources, IGN has learned that employees in the UK and US were notified of layoffs today, with an unknown number of US employees set to be laid off by the end of the week, while 137 jobs in the UK may be at risk. Under UK law, Square Enix must enter into redundancy consultations to see if it is possible to retain any jobs, so the final headcount in the UK is likely to be lower. It's unclear which teams are affected or to what extent.

Inside, slideshow now public A progress report was also shared with employees earlier today regarding Square Enix's ongoing “overseas organizational restructuring,” which this restructuring appears to be part of. According to Square Enix, the strategy already involves “closing overseas development studios and moving toward consolidating development functions in Japan.”

As part of this, Square Enix has sold Crystal Dynamics, Eidos-Montreal, Square Enix Montreal and many related IPs to Embracer Group. Already Its western operations will be laid off by 2024.

This gives Square Enix the Life is Strange, Outriders and Justified series currently managed by its Western studio, as well as the release of Powerwash Simulator.

Square Enix has shared a statement with IGN confirming the layoffs, but did not answer questions about the number of people affected, their roles, or whether any projects or specific studios were affected:

We are restructuring our operations in North America and Europe to strengthen our growth structure and drive a global integrated marketing strategy.

This was an extremely difficult decision and was made after careful consideration and analysis by our leadership in order to better position the Group for long-term growth.

We would like to express our sincere gratitude to the talented team members who are leaving the company for their significant contributions to Square Enix. We remain committed to treating everyone with the utmost respect during this transitional period and providing extensive support throughout the process. “

In the same presentation shared today, Square Enix also said that it expects 70% of its QA work to be handled by generative AI by the end of 2027. The company has said in the past It intends to “actively apply artificial intelligence” in development and publishing.

Rebekah Valentine is a senior reporter at IGN. You can find her posts at BlueSky @duckvalentine.bsky.social. Have a story tip? Send it to [email protected].