Square Enix Laying Off Employees Across Most Departments in Its Western Offices

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Square Enix Layoff Reports Shake Western Offices According to a recent article from VGC, Square Enix is initiating layoffs across nearly all departments within its Western locations, impacting personnel in both Europe and the United States. Although the exact number of employees affected remains undisclosed, sources indicate that around 140 staff members are at risk of losing their jobs specifically from the London office. The announcement was made during an internal video call, part of a broader restructuring plan that Square Enix outlined in today’s progress report, highlighting an ambitious goal of having 70% of quality assurance tasks powered by artificial intelligence by 2027. In the progress report, the company stated, “a fundamental restructuring of the overseas publishing organization is being implemented with the aim of further strengthening global publishing capabilities and improving operational efficiency.” This statement aligns with insights shared by Square Enix President Takashi Kiryu, who described the layoffs as a strategy to make the company more “lean” and “agile.” The financial projections estimate annual savings of approximately 3 billion yen due to these layoffs. Beyond cost-cutting, these layoffs are part of a strategic move to centralize development efforts within Japan, as articulated in the progress report: “To strengthen development capabilities from a Group-wide perspective and to optimize resource allocation for maximizing the value generated by IPs, a further review of the development pipeline was conducted.” As a consequence, Square Enix has decided to shut down overseas development studios to enhance operational efficiency. Square Enix is not alone in this shift toward regional consolidation. Following the successful launch of Marvel Rivals, fellow Asia-based developer NetEase has also streamlined its California operations by cutting its local team and shutting down multiple subsidiaries, including Fantastic Pixel Castle yesterday and Bad Brain Game Studios today in Toronto. This trend of reducing overseas branches appears to be an industry-wide movement aimed at enhancing collaboration within core operational centers. Source & Images