Sega has confirmed recent rumours surrounding a staff cut in its North American headquarters in San Francisco.
The company said that 30 employees were let go, citing the economic recession as the reason.
"Sega of America has grown at pace with the booming videogame industry," the company explained in a statement.
"But at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success."
"The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavours."