Last week, gaming enthusiasts were both surprised and excited to learn that Relic Entertainment, the renowned studio behind the beloved WWII-themed strategy game, Company of Heroes, would become an independently-run entity, breaking away from Sega's umbrella with the help of an external investor.
However, the joy was short-lived as news of a wave of layoffs at Relic came to light, affecting more than forty employees at the company.
The gaming industry has been facing turbulent times, with an alarming number of layoffs and studio closures in recent years. Since the beginning of 2023, nearly 20,000 industry workers have lost their jobs, leading to the cancellation of projects, the discontinuation of established games, and significant restructuring within companies across the sector.
Relic Entertainment joined the list of casualties as they released a statement on LinkedIn acknowledging the unfortunate layoffs. In the statement, they expressed:
"Letting people go was not an easy decision, and was made solely with the goal of providing Relic the best possible chance to survive in an increasingly volatile industry."
The studio also clarified that the layoffs were not a reflection of the talent, dedication, or character of the affected employees. They assured that support in the form of severance packages, extended benefits, and outplacement assistance would be provided to those impacted.
The announcement did not disclose the exact number of employees affected, but a report by Game Developer later confirmed that 41 individuals were let go. This news followed a larger round of cuts at Sega, which affected 240 employees worldwide.
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