Following poor financial results, Sega Sammy is asking 560 staff to volunteer for redundancy, as the company attempts to return to profitability in the next financial year.
Sega is also to close 110 amusement facilities, and slash 20 per cent of research and development costs in its amusement machine and consumer business.
The publisher will now consult with staff for approximately two weeks in a bid to reduce the headcount, which currently stands at 3127 employees.
Sega expects to payout JPY 4 billion in severance allowances and reduce annual labour costs by around JPY 5 billion for the year ended March 2010.
For the nine months to December 31, 2008, the publisher recorded a USD 119 million loss (JPY 10.8 billion).