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Sega of America to lay off 61 employees

A WARN notification filed in California confirms the layoffs due in March

Update: The Allied Employees Guild Improving Sega reacted on social media, confirming this is related to the previously announced plan to "phase out" temporary workers by February 2024.

The union said they had been in discussion since November to negotiate the situation, but confirmed the 61 layoffs.

"Through our union efforts, we’ve been able to more than double the number of saved jobs, and to offer severance to our temp workers," the union said. "This, however, does not take away from the fact that many of our coworkers are being laid off in a decision we believe will have a negative impact on the working conditions of those who remain with the company, and in the quality of our future games.

"In spite of this, we remain committed to fighting for our coworkers, and for the betterment of our industry. In the face of mass layoffs that continue to happen across gaming companies, we stand united and in solidarity with those affected."

Original story: Sega of America is set to lay off 61 employees on March 8.

The information emerged via a post from What Layoff on social media, and is confirmed by a WARN notice filed in Orange County, California on January 8.

Sega of America is set to lay off 61 people across two close locations on its Irvine campus – 12 in one office and 49 in another.

Worker Adjustment and Retraining Notifications are mandatory for companies employing more than 100 staff, and aim to provide a 60-day notice of planned redundancies and layoffs. has reached out to Sega for comment.

Shuji Utsumi was appointed CEO of Sega America and Europe earlier this month.

Sega of America workers voted yes to unionise in July last year, forming the Allied Employees Guild Improving Sega (AEGIS). In November, Sega of America was accused of attempting to lay off staff in response to their bargaining efforts.

Sega Sammy reported a solid first half to its financial year back in November, with net sales for the six months ended September 30, 2023 rising 47.3% year-on-year to ¥221.2 billion ($1.5 billion).

Sega acquired Rovio for €706 million in April 2023.

Layoffs have occured in other Sega units in recent months, with Sega cancelling Creative Assembly's Hyenas due to "structural reforms" in late September 2023, and 121 redundancies happening at Company of Heroes developer Relic Entertainment in May 2023.

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Marie Dealessandri avatar
Marie Dealessandri: Marie joined in 2019 to head its Academy section. A journalist since 2012, she started in games in 2016. She can be found (rarely) tweeting @mariedeal, usually on a loop about Baldur’s Gate and the Dead Cells soundtrack. GI resident Moomins expert.
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