Square Enix is making significant personnel changes, with reports suggesting mass layoffs affecting over 100 employees. This move is part of a larger strategy to streamline its publishing efforts and concentrate its development initiatives within Japan.
Based on public statements from former employees and insights from internal sources, it has come to light that employees in both the UK and the US are receiving layoff notices today. While the exact number of US employees being let go remains undisclosed, in the UK, as many as 137 positions could be under threat. Due to UK laws requiring redundancy consultations, some jobs may potentially be retained. The specific teams affected and the extent of these layoffs are currently unclear.
Restructuring and Consolidation
Internally, a presentation released publicly provided employees with an update on Square Enix’s “reorganization of overseas organizations,” which appears to include these layoffs. The company is focusing on closing overseas development studios while enhancing development capabilities in Japan.
As part of this strategy, Square Enix has already sold Crystal Dynamics, Eidos-Montreal, Square Enix Montreal, and several associated IPs to Embracer Group. Additionally, layoffs have occurred across its Western operations earlier in 2024.
The company’s Western studios continue to manage franchises such as Life Is Strange, Outriders, and Just Cause, alongside publishing Powerwash Simulator.
Official Statement and Future Plans
Square Enix confirmed the layoffs but did not specify the number of people affected or which roles and projects might be impacted:
We are reorganizing our operations in North America and Europe to strengthen our development structure and to drive a globally integrated marketing strategy.
This was an extremely difficult decision, made following careful consideration and analysis by our leadership, in order to best position the Group’s long-term growth.
We extend our heartfelt gratitude to the talented team members who will be departing the company for their significant contributions to Square Enix. During this period of transition, we remain committed to treating each individual with the utmost respect and providing extensive support throughout this process.”
In the same presentation, Square Enix revealed plans for 70% of its QA work to be managed by generative AI by the end of 2027. The company has expressed intentions to aggressively implement AI technologies across both its development and publishing sectors.