Games cancelled amid Â£54m digital restructure; UK franchises expected to stay strong
Publishing giant Sega is arranging a number of job cuts across its European and US businesses, the company has announced.
Employee redundancies will come in effect as the group looks to axe multiple game projects in development.
The company believes it will record £152 million in profit for the twelve months ending March 2012, but about £54 million is set aside for the restructuring process.
Develop has contacted Sega for comment.
There is no indication yet of which studios and divisions have been targeted for staff cutbacks.
Sega’s UK studios, Sports Interactive and The Creative Assembly, have both recently hired new recruits and, it is believed, are both increasing studio capacity. The layoffs therefore could instead be targeted at the UK publishing divisions, though there are no certainties yet.
The publisher said it still expects strong sales from Football Manager, Total War and Aliens – all developed in the UK – as well as its Sonic franchise.
But it added: "We are cancelling the development of some game software titles."
“It is essential to streamline organisations in the field of home video game software in the US and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content,” read a company statement.