SEGA of America, part of Sega Sammy Holdings Inc - ADR SGAMY is set to lay off 61 employees on March 8, as revealed by an automated X bot sharing Worker Adjustment and Retraining Notification (WARN) notices.
According to Insider Gaming, the Allied Employees Guild Improving Sega (AEGIS-CWA) union, actively opposing SEGA's plan to outsource QA and part of localization, expressed discontent on X.
See Also: Union Accusations Against Sega: Alleged Threat Of Mass Layoffs Uncovered
The union stated: "Sega management announced their plan to outsource QA and part of localization in a move that would significantly impact our workforce. Today the layoff that will result in the loss of 61 jobs across these two departments was made public."
Despite the union's efforts, the layoffs are expected to negatively impact working conditions and game quality. It asserted: "We believe will have a negative impact on the working conditions of those who remain with the company, and in the quality of our future games."
Furthermore, the union clarified through collective efforts it managed to save more than double the initially at-risk jobs and secured severance for temporary workers.
The union also highlighted the broader issue of mass layoffs in the gaming industry, stating, "In the face of mass layoffs that continue to happen across gaming companies, we stand united and in solidarity with those affected."
SEGA of America has not responded to requests for comment, leaving uncertainty about whether the layoffs are connected to the company's earlier plan to phase out temporary employees by February, a move the union opposed.
Read Next: 'I Want Sonic To Surpass Mario," Says SEGA Executive
Photo: IB Photography on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
