Sega of America has announced that it will be laying off 61 employees by March 8. This news, initially revealed by an automated Twitter bot posting Worker Adjustment and Retraining Notification (WARN) notices, has sent ripples through the gaming community.
🚨 LAYOFF ALERT - California 🇺🇸
— What Layoff? (@WhatLayoff) January 31, 2024
Sega of America, Inc. at 140 Progress, Suite 100, Irvine CA 92618 and 6430 Oak Canyon Road, Suite 100, Irvine CA 92618 will layoff 61 employees on March 8, 2024 as indicated in a California WARN notice.
The reasons behind these layoffs are currently unclear. There is speculation that this move might be connected to Sega's previously reported plans to phase out temporary employees by February, a decision that faced opposition from the Allied Employees Guild Improving Sega (AEGIS-CWA) union.
As of now, Sega of America has not publicly commented on these layoffs. Insider Gaming, who first reported this development, has reached out to both Sega of America and AEGIS-CWA for further comments. Updates will be provided as more information becomes available.
This news comes amidst a period of significant changes within the gaming industry. For instance, Sega's recent acquisition of Angry Birds maker Rovio Entertainment for $775 million marked a major expansion in their portfolio. However, the decision to lay off a significant number of employees raises questions about the company's future direction and the stability of jobs within the gaming sector.
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