SEGA Europe hit with layoffs under department reconstruction

sega_logoOuch. Bad news for employees of the European branch of SEGA, as its been revealed that the company has confirmed multiple redundancies in the effort to reconstruct its departments. This reconstruction includes both the Sonic the Hedgehog and mobile game departments, two pretty big players for SEGA right now – especially considering the massive shake up happening to the Sonic franchise with Sonic Boom coming later this year.

Speaking to Polygon, a SEGA of America representative confirmed the job losses. In their own words:

“Sega is in the process of consolidating certain functions of the Sonic and Mobile departments within Sega of America, where the management and production for those areas of the business reside,” we were told. “As part of that strategy a limited number of redundancies have taken effect in our European office, based in London.”

This comes following layoffs late the previous year as a reaction to the “ever-changing environment” of the game industry, and closures of several offices in both Europe and Australia back in 2012 to focus on their four main franchises: Sonic, Aliens, Football Manager and Total War. Regardless, all the best to the people affected by this move for the future!

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Symbotic

A video game enthusiast, dog lover and dedicated Netflix user. Would probably spend every day eating pizza and talking about movies quite happily.

31 Comments

  1. It’s only going to get worse.. not only for SEGA but video game companies everywhere πŸ™

    Best of luck to those affected πŸ™

  2. Well it’s official, Sonic Boom is the last chance for the Blue Blur. Think about it, if Sonic were doing well, nobody it his division would be getting laid off. Further more, it’s specific to Sonic & the mobile division. Bad news indeed.

      1. Your comment would be better if you raised a proper counterpoint. To quote someone else: Sonic doesn’t keep the lights on anymore.

        1. Yeah, because one of the most famous franchises in the world isn’t doing the job anymore. Because Titanfall is the future of gaming, and platforming is not going to last and platforming is going to die out and burn.

          1. Yes, because nobody-I mean no teenager these days care about any platformers. All they care about is SHOOT EM UP SHOOT SHOOT SHOOT

        2. @bloody Murder

          When your original statement is so wrong. I can barely bring myself to even bother.

          My original comment stands “That’s not how it works.”

          1. Dude, you are completely wrong with your original statement, especially with how it relates to this news… trying to claim people are lying is making you look really desperate.

          2. Ok so lets look at it shall we… Your claim “Well if it were doing well, then this wouldn’t be happening”

            That’s not how these things work at all. But hey you don’t believe that because it’ll mean you are wrong. So now you actually want me to write an essay for you explaining what. Well sorry but frankly I got better things to do than waste my time. But since I doubt you’re going to drop the subject. Here’s some basics.

            3 Stages to an efficient information system within a business.

            INPUT —> PROCESS —-> OUTPUT.

            Problem here is that, how do you define if that’s efficient? Location of the services? SOA is handling most of the BOOM stuff, SOJ is handling the other side, so why should SOE be involved with the Sonic loop? Cost efficiency as well as data/information flow alone means SOE’s inclusion in the Sonic brand makes this a less efficient service.

            Now lets talk about an organisational pyramid within a business… You have…

            Strategic (your directors, CEO, the people thinking 10 years ahead).

            Tactical (Heads of department, The people thinking 5 years ahead.)

            Operational (everybody else, the people doing in the now.)

            The decision to close likely came from the tactical sector of the pyramid, possibly strategic given how long Boom has been in development for.

            Not a response to a short term in the now plan. Especially since it impacts an entire regional output of operations. The decision to close/move/shift operations likely came months ago, if not a few years.

            Now lets go back to what you said. “Sonic Boom is the last chance for the Blue Blur.” Lets review global operations now shall we? The things taken at the strategic level of business. The ones which are in the planning 5-10 years ahead… what’s happened?

            Joypolis in Japan has had a huge upgrade with a main focus on SegaSonic.
            Sega Republic has opened.
            Sega Amusemenents have expanded with a focus on Sonic (as well as transformers and Plants Vs Zombies)
            Sonic Boom has been green lit.
            Sonic Boom was originally it’s own cartoon (not tied to the game, suggesting Sega had such confidence in the game to green light a new cartoon long before the idea of linking it to Boom). (you can check SSMB for that source it’s quite easily identified).
            Rumor of a movie.
            At least 3 Nintendo games.
            At least 1 non Nintendo multi format game.
            Expansion of Casino operations in Japan with a focus on Sonic pachinko games.
            Expansion of Sonic into Spain, Andorra, Portugal, Angola, Cape Verde, Guinea Bissau, Equatorial Guinea, Mozambique, SΓ£o TomΓ© e Principe and East Timor. (As of 2014, you can check toyworldmag for that one).

            Does this sound like the actions of a “last chance” when the company is in fact expanding the brand in multiple locations with several different focuses not on Boom on all levels within a company. Not just those on the Strategic, Tactical or Operational level.

  3. Ouch. I have a little bit of hatred for SEGA right now. Why can’t they just be like they were before? πŸ™

  4. Well I think Sonic his fighting skills are amazing in Super Smash Brawl ,expect Super Smash Bros 4 for Nintendo 3DS, the release date is summer 2014 and Super Smash Bros 4, for Nintendo Wii U is winter 2014 or maybe is December 31, 2014 have a same release date of Sonic Boom,. Also Super Smash Bros 4 is the most popular game ever but I think Sonic Boom , is a good game maybe going to get both.

  5. Sega is doing exactly what Capcom tried a few years ago and it went terribly for them. After they shelved all Mega Man projects, they wasted money dumbing down Resident Evil into a generic action game, filling their games with microtransactions and on disc DLC and like Sega, here chasing the dragon known as mobile gaming. What happened to them? They had to slash their sales expectations because SURPRISE! the mobile market wasn’t the gold mine of easy casual money they thought it was.
    I was pleased a few years ago when Sega decided to stop trying to crank out 5 new Sonic games a year and try to put more focus on a single game but at the same time, they have to look at what the people want. They just follow the industry trends. They turned Goldenaxe into a lame God of War knockoff and couldn’t even make a competent FPS based on the Aliens franchise.

    Next time anyone talks about how Nintendo should “go third party” or “go mobile” remember this because, this is the fate that Nintendo is doomed to if that happens.

    But really given how bad so many studios are doing and laying off employees left and right (even Sony despite the PS4’s “success”), is a sign that the game industry is in decline.

  6. Unfortunate, but changing economies force companies to change their tactics. Sometimes they have more positions than they really need, too, and in reality getting rid of the extras can cut profits… although obviously increasing workload on the remaining member(s) and also leaving some people without jobs.

    Still, it’s the natural ebb and flow of the economy. I’m not a major in it or anything, but I can’t expect a company to go very long without major changes. Sega still seems to be finding their feet and a good amount of workers versus cost. It’s going to take them a while to get settled, I think.

  7. Does this mean SEGA Australia is shutting down (I happen to live in Australia)! Does this mean we won’t get our share of sonic games! Then again they aren’t going to stay up and running for a wile. I was looking forword to sonic boom and now I won’t be able to get the game or watch the TV show D;

    1. I don’t see why you wouldn’t get the games. They might just send the NA version (I believe NA is more strict than AU in terms of what is shown, so it’s not a matter of there not being enough censoring/changes, ehehehe). They will continue to send games to Australia, at least, so they can make a profit. Would be silly if they didn’t, I believe πŸ˜›

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