The layoffs continue – Sega to sack 560

Definitely not something I enjoy reading about, much less write about. But the recession is really pouring down hard on the industry, and companies are forced to sack people to cut down on expenses. Now it’s Sega‘s turn, and 560 less people are not gonna feel the love on Valentine’s.

Definitely not something I enjoy reading about, much less write about. But the recession is really pouring down hard on the industry, and companies are forced to sack people to cut down on expenses. Now it’s Sega‘s turn, and 560 less people are not gonna feel the love on Valentine’s.

Along with 560 people losing their jobs, Sega will also close 110 of their amusement facilities. “Sega has failed to swiftly respond to sharp changes in the business condition,” read their investor report. “‬[Sega] is expected to record substantial operating losses in its amusement facilities business and consumer business in two consecutive years.‭”

The voluntary redundancies account for 18% of Sega’s workforce. If they sack all 560, then they’ll save itself Â¥ 5 (nearly US$ 55 million) billion in labor costs, while severance pays and other benefits will only give them a one-time Â¥ 4 billion (almost US$ 44 million) loss. The cost-cutting won’t stop there. Sega’s also gonna cut research and development by 20% for the next fiscal year by consolidating titles to be developed.

• The first of many? Microsoft shuts down Flight Simulator studio
• SCE: games division least likely to be affected by Sony job cuts
  

Via Edge