Summary
Major publisherSquare Enixis reportedly set to lay off employees across its US and EU locations soon. Notably,Square Enixowns multiple popular franchises, including the massively successfulFinal Fantasyseries.
As good as 2023 was for gamers, it was a terrible year for some developers as they were rocked by a slew of devastating layoffs. Unfortunately, 2024 also kicked off in the same vein withSega announcing job cuts, Xbox shuttering first-party studios, and more. It now appears that Japanese publisher Square Enix may soon add its name to the list of companies that have conducted layoffs this year.
According toVGC, Square Enix has told its employees that it will carry out layoffs in US and EU-based offices as part of a restructuring drive. The source states that this information was laid out by Takashi Kiryu, whobecame Square Enix Presidentlast March, in an internal meeting on Monday. As per the report, the layoff will impact an undisclosed number of employees, mostly those working in the IT, publishing, and indie games (Square Enix Collective) departments. These job cuts will reportedly come into effect over the next month.
Square Enix Layoffs May Be Announced Soon
Moreover, the report mentions that “many of Square Enix’s main Slack channels were locked” post the internal talks. It has also been stated that employees affected by the layoffs will be informed this week. Importantly, this development follows directly from Square Enix’s earnings call where it mentioned rebuilding its overseas divisions “from the ground up.” Further, the source adds that, among the laid-off employees, UK-based employees are expected to enter a one-month consultancy period due to the nature of local laws there, whereas US-based employees could leave even before the month ends. Besides the UK, Square Enix has offices in more European countries, including Italy, Germany, France, and Spain.
Meanwhile, the Japan-based publisher also revealed a significant change to its strategy of releasing games in the future. It has been confirmed that going ahead,Square Enix will target multiple platformsfor its games, including AAA releases belonging to franchises likeFinal FantasyandKingdom Hearts.
One of Square Enix’s big releases from last year,Final Fantasy 16, rolled out as a PS5 exclusive title. However, following a very positive reception and strong launch sales, theprofits generated byFinal Fantasy 16dwindledearlier than expected. Keeping this in mind, the company’s latest decision to go multi-platform could be born out of a need to ensure prolonged success for its games.
