Square Enix to reduce workforce as part of new business strategy

Square Enix, the renowned video game company, is set to undergo a major company restructure that will result in layoffs for staff in Europe and the United States. The news was revealed in an internal staff meeting by Square Enix boss Takashi Kiryu, who detailed the upcoming layoffs in publishing, IT, and the indie games division.

This restructuring comes on the heels of a new business plan aimed at strengthening Square Enix and its AAA games output. The company plans to pursue a new three-year strategy focused on long-term growth, which includes multiplatform game releases and a focus on creating successful gaming hits. As part of this strategy, Square Enix has already cancelled several games in development, resulting in significant content abandonment losses.

Speculation is rife that future entries in the Final Fantasy 7 remake series could be released on Xbox and PC, following underwhelming sales of the initial launch of Final Fantasy 7 Rebirth. The company’s decision to cancel games and restructure its operations is seen as a response to a reported 70% drop in annual company profits.

While the exact number of staff layoffs has not been confirmed, it is expected to be significant. Employees impacted by the layoffs will be informed this week, with legal processes set to begin shortly. The company’s new three-year strategy indicates that further changes are on the horizon, which could potentially reshape Square Enix as we know it.

Our thoughts are with the employees who will be affected by these layoffs as Square Enix navigates this period of transition and change.