Update:
Quick Breakdown:
-Sega is continuing their refocus to digital games.
-As part of this, they're downsizing their Western publishing business (but not their Western development studios), and staff in their arcade game department in Japan. They're also transferring the staff they can to mobile/PC Online in particular.
-So far 120 layoffs have been announced at Sega West, primarily in Sega of America and some in Sega of Europe (this is the publishing business, not the studios).
-Sega intends 300 layoffs total, with a notable portion of that presumably coming from the arcade business in Japan.
-They're plausibly also changing what some of their staff work on - and we've certainly seen that over time from Sega - but that's not directly related to the layoffs we're talking about today. The layoffs are focused on business components that can't easily be transferred to digital, which are primarily retail publishing resources and physical devices like arcade machines.
Press release (read this link): http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf
Also:
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A bit more over at the Source (MCVUK)
Quick Breakdown:
-Sega is continuing their refocus to digital games.
-As part of this, they're downsizing their Western publishing business (but not their Western development studios), and staff in their arcade game department in Japan. They're also transferring the staff they can to mobile/PC Online in particular.
-So far 120 layoffs have been announced at Sega West, primarily in Sega of America and some in Sega of Europe (this is the publishing business, not the studios).
-Sega intends 300 layoffs total, with a notable portion of that presumably coming from the arcade business in Japan.
-They're plausibly also changing what some of their staff work on - and we've certainly seen that over time from Sega - but that's not directly related to the layoffs we're talking about today. The layoffs are focused on business components that can't easily be transferred to digital, which are primarily retail publishing resources and physical devices like arcade machines.
Press release (read this link): http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf
Sega said:Notice of Implementation of Structure Reform in SEGA Corporation
It is hereby notified that SEGA SAMMY HOLDINGS INC. (the “Company”has determined at
its Board of Directors meeting, held on January 30, 2015, to implement measures for structure
reform in SEGA Corporation (“SEGA”
1. Implementation of Group Structure Reform
The Company established the Group Structure Reform Division on May 9, 2014, and has held
discussions to review the earnings structure of the entire Group from a mid to long-term point
of view. The Group announced on October 31 three initiatives: 1) restructuring into three
business groups, 2) initiatives to drastically improve profitability, and 3) appointment of
personnel in charge of structure reform in SEGA, and has developed a structure to enable
investment of management resources in growth areas, which include new fields such as Digital
Games and Resort Business, while addressing issues in existing businesses.
As part of these measures, SEGA has positioned Digital Games, centered around smartphone
and PC online gaming, as a growth area and has determined to implement the following
measures in order to constantly post profits by improving management efficiency while
promptly promoting redistribution of management resources.
2. Details of Measures for Structure Reform in SEGA
a. Enhancing efficiency in domestic (Japanese) businesses
SEGA will review its business structures mainly in Amusement Businesses (arcade machines) and will
narrow down product lineup and withdraw or consolidate and downsize some of the
services.
b.Soliciting voluntary retirement
Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or
consolidated and downsized, while at the same time personnel will be repositioned in
Digital Games and growth areas of Group mainly as development personnel, in order to
establish a structure which can constantly generate profits. The purpose of these measures
is to improve the business efficiency of the Group.
＜Outline of SEGA’s solicitation for voluntary retirement＞
Number of solicited employees: About 120
Solicitation period: About 2 weeks from 9 February, 2015
Retirement date: In fiscal year ending March 2015 (plan)
c. Enhancing efficiency in overseas businesses
Local organizations managing (publishing staff, not development staff) packaged game software in Western markets will be
streamlined. In the U.S., Sega of America, Inc. based in San Francisco will be relocated to
Southern California by this summer and its existing office in San Francisco will be closed
thereafter, which results in reducing fixed expenses, mainly in corporate functions. In
addition, the Sonic and merchandising businesses will be reinforced to establish a
structure which can generate stable profits.
4. Future outlook
The Group is currently assessing the impact on full-year consolidated operating results
forecast for the year ending March 31, 2015 from aforementioned structure reform measures
implemented in SEGA.
The Group is taking initiatives for structure reform including soliciting voluntary retirement
at several group companies in addition to the aforementioned measures implemented in SEGA.
The number solicited for voluntary retirement and such for the entire Group is scheduled to be
around 300 (regular employees) and the early retirement benefit is expected as a result of this
measure. The Group also plans to rightsize employees, including fixed-term employees. In
addition to the aforementioned labor costs reduction, the Group is taking measures such as
implementing actions for enhancing efficiency in domestic and overseas businesses.
Taking into consideration the above, the impact on the full-year consolidated operating results
forecast for the year ending March 31, 2015 is that net income is expected to fall but the detail
of the forecast is currently being assessed. It is scheduled to be announced with the third
quarter results announcement scheduled for February 12, 2015, after acknowledging sales
trends of mainstay products in the fourth quarter.
Also:
GameSpot said:
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A bit more over at the Source (MCVUK)
