Sega Confirms 300 Staff Layoffs on the Anniversary of Sonic the Hedgehog 2006

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It seems like the ghost of Sonic the Hedgehog (the 2006 game) is still lingering around Sega, as the company has announced they’re laying off 300 employees, as a part of their ongoing corporate restructuring.

Today is the 8th anniversary of the hilariously bad reboot, and the company is axing the jobs of 300 employees, 120 of which are part of Sega of America. The company will also be relocating their American headquarters from San Francisco to Southern California.

The reasoning behind the restructuring is to shift their focus to smartphone and online PC games. Last November, the company posted a huge loss, and the notion that they should shift focus to online sales had already been stated.

This new restructuring is going to begin some time early this summer, where a currently unknown total number of employees being laid off will be confirmed. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it,” said Sega of America president, John Cheng. He continued:

This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more. We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.

The company’s upcoming game release schedules will not be affected, the press release assured.

The European branch of Sega will experience “limited” redundancies, in comparison.



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