Square Enix confirms 'fundamental restructuring' of overseas business will result in layoffs
Final Fantasy maker Square Enix is laying off an undisclosed number of employees across North America and Europe in a move it claims will "strengthen" its development structure.
The company confirmed the news to IGN, which is reporting that well over 100 people will be impacted by the cuts. Square Enix did not disclose how many jobs are being axed.
The redundancies were confirmed at the same time Square Enix outlined plans to use generative AI technology to automate 70 percent of QA and debugging tasks by late 2027.
"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 Groups long-term growth," reads a statement sent to IGN.
"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."
Square Enix openly detailed plans to review and optimize its "overseas studio development organizational structure" within its latest Mid-Term Business Plan update, which was shared with investors this week.
The publisher said the three-year initiative is designed to "reboot" the company in service of long-term growth and will require a "fundamental restructuring" of its overseas publishing business.
"In the current fiscal year, a fundamental restructuring of the overseas publishing organization is being implemented with the aim of further strengthening global publishing capabilities and improving operational efficiency," it explained.
The company said it must also review its development structure, which will result in the closure of overseas studios and a shift towards "consolidating development functions in Japan."
"The management of IPs previously overseen by overseas development studios will be globally integrated," it added. "In addition, development support functions and personnel allocation, both in Japan and overseas, will be reviewed from the perspective of overall Group optimization."
Square Enix claims those structural reforms will deliver annual cost savings of more than 3 billion yen ($19.5 million).
