Square Enix has announced a new wave of layoffs affecting nearly all areas of its Western business, particularly its European and U.S. offices.
The announcement was made during a video conference held earlier today, attended by employees from both regions. According to VGC sources, company president Takashi Kiryu spoke about a structural reform overseas aimed at making international operations more “lean and agile.” Unfortunately, such terms are often linked to staff reductions.
Layoffs as Part of Cost-Reduction Plans
VGC’s report indicates that no specific details were shared regarding the restructuring plan for Western offices. However, job cuts were confirmed, and affected employees were reportedly notified the same day. Remaining staff were told they would need to spend more time working in the office.
No exact number of layoffs was provided, but a European source stated that at least 140 employees were informed they were “at risk” in the London office alone. The affected departments include IT, marketing, publishing, sales, quality assurance, corporate planning, and others. Additionally, Square Enix Collective, the division responsible for brand marketing and supporting external development studios, has also been warned about potential cuts.
This new round of layoffs is part of Square Enix’s broader plan to reduce costs by approximately 3 billion yen (about $19.6 million) during the current fiscal year. Although the company had already implemented staff cuts in its Western offices last year, President Kiryu stated that those measures did not achieve the desired results.
Interestingly, the layoffs were announced on the same day Square Enix revealed plans to delegate most of its QA and debugging work to generative AI within the next two years. While the two decisions may not be directly related, the timing certainly raises eyebrows.
In other news, Square Enix considered shutting down Final Fantasy XI in 2024, but decided against it due to strong player interest.
