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Relic Entertainment Announces Independence
Last week, Relic Entertainment made a significant announcement that it would be parting ways with Sega and transitioning into an independent entity with the backing of an external investor. This move certainly caught the attention of the gaming community, especially fans of one of Relic’s most popular games, Company of Heroes 3. Despite the assurance from Relic that this change would not impact their ongoing projects, recent reports have shed light on some unfortunate consequences of this transition.
Layoffs: A Difficult Decision
According to a post by Robyn Smale on LinkedIn, an external development producer, following Relic’s decision to go independent, the company had to make the tough choice of letting go of 41 employees as part of the restructuring process. The company later issued a statement on LinkedIn, emphasizing that this decision was not taken lightly and was purely aimed at ensuring Relic’s sustainability in an increasingly turbulent industry. They made it clear that the layoffs were in no way a reflection of the dedication, expertise, or character of the affected employees.
Sega’s Cost-Cutting Measures
Relic’s departure from Sega came amidst a broader initiative by the latter to implement cost-saving strategies. Jurgen Post, the head of Sega Europe, acknowledged that there were layoffs not only within Sega but also at other studios like Creative Assembly and Hardlight. In an email obtained by IGN, Post explained that these workforce reductions were essential to streamline operations, focus on core strengths, and position the company favorably for the future. This restructuring was deemed necessary to adapt to the changing economic landscape and the evolving demands of game development and distribution.
Industry-Wide Layoffs
The news of Relic and Sega’s layoffs aligns with a trend seen across the games industry in recent years. Videogamelayoffs.com reports that the total number of estimated layoffs in 2024 has already surpassed 8,000, with an additional 10,000 or more recorded in 2023. These figures underscore the challenges faced by many game developers and publishers, as they navigate through a rapidly evolving marketplace characterized by both opportunities and uncertainties.
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