Sega May Not be Done with Layoffs
If Sega’s financial situation is as dire as it has been perceived by media the past few weeks, they are not done with restructuring. In fact, in addition to Sega of America’s recent gutting, you may also want to say good-bye to some of the regional divisions in a worst-case scenario.
A source with ties close to the company told Spanish website Sonic Paradise over the weekend that long-term plans are underway inside Sega to centralize operations at a few select locations around the globe. That means while Sega of America, Europe, and Japan would stick around, the more regional divisions would be under threat of layoffs, if not made completely redundant. The Sonic Paradise report cites Sega of Spain as a specific example, but TSSZ has learned other divisions such as those in France, Germany, and Benelux aren’t out of the woods.
Why might this happen? The Sonic Paradise report says it is due to Sega going full-throttle with its digital strategy. Specifically, you may see much more digital distribution of upcoming titles, and less physical copies in stores. Sega has been touting a digital strategy for some time now, but in light of the major losses the company will post in its FY2012 earnings report, it appears they mean it this time with an eye toward cutting costs. The report points out this shift will be gradual.
As Sonic Paradise has labeled the original story as rumor, we too will officially file it as rumor for purposes of consistency. That said, given what has happened in recent weeks, the writing is certainly on the wall. We will keep tabs.
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So, the major branches (San Francisco, London, Tokyo) will not be shut down?
That’s a good sign.