The restructuring announced by Square Enix it also involves several layoffsas is emerging in these hours from various sources within the publisher, with the US and European divisions particularly affected by these staff cuts.
It is therefore not just about project cancellations due to a shift in the company’s focus to fewer, broader and possibly multiplayer games: the restructuring also includes a still undefined number of layoffs, which seem to have mainly affected the western divisions of the company.
According to various testimonies, these staff cuts will be felt particularly in the sections dedicated to publishing, localization and management of indie projects under the Square Enix Collective label.
Less games and towards more people
There is no precise information yet because the official communications they will only arrive later in the week, but it is likely that these will be significant cuts, with numerous layoffs in these sectors of the company.
Following the internal meetings held today, several Square Enix Slack channels were closed, so as not to spread further information ahead of time, while the company did not want to officially comment on the matter, contacted by VGC and other newspapers.
Square Enix’s latest financial results have proven to be rather negative, with a collapse in profits of around 70% compared to the previous year, partly also due to the losses linked to the general reorganization and the cancellation of ongoing projects, as well as evidently to suboptimal performance on the market.
The solution proposed by the new CEO Takashi Kiryu is a reduction in the projects to be carried out, which will have to focus on large-caliber titles with greater possibilities of commercial success, as well as a progressive overcoming exclusivity to move towards multiplatform games that can reach as many users as possible.
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