Square Enix has been hit with layoffs in its Western offices, citing “overseas structural reform” to enable the company to be more “lean and agile,” said Square Enix president Takashi Kiryu.
The layoffs today affect over 100 people across the company, including those in influencer relations, localization, and QA.
Posts on social media from former employees reveal they were informed today of the layoffs. Those at risk in the UK were reportedly around 140 employees, but UK employment laws dictate that Square Enix must ensure jobs can be saved, making the final tally likely smaller.
With the process already underway, Square Enix has cut overseas studios and sold them, including Eidos Montreal, Crystal Dynamics, and Square Enix Montreal, and also several IPs to Embracer Group.
Square Enix released a statement to IGN confirming the layoffs:
We are reorganizing our operations in North America and Europe to strengthen our development structure and to drive a globally integrated marketing strategy.
This was an extremely difficult decision, made following careful consideration and analysis by our leadership, in order to best position the Group’s long-term growth.
We extend our heartfelt gratitude to the talented team members who will be departing the company for their significant contributions to Square Enix. During this period of transition, we remain committed to treating each individual with the utmost respect and providing extensive support throughout this process.”
Square Enix also confirmed that it would be shifting a majority of its QA work to generative AI within the next couple of years, aiming to support the company’s structural changes.
