Issue Date: Vol. 52, No. 7, July 2012, Posted On: 6/27/2012
Sega Reportedly Begins Layoffs In U.S., France
Sega layoffs, Sega Corp., Sega Sammy, Hajime Satomi, Miles Jacobson, Sega loss, Sega video game, amusement business, video game, arcade video game, home video game sales, coin-op video game
TOKYO -- Sega has begun laying off its home videogame staff in the U.S. and France, and layoffs elsewhere are planned, according to various Internet reports.
As previously reported by VT, the personnel cuts were forecast last March when Sega announced an $86.4 million loss for the 2011-2012 financial year, triggered by 20% to 30% declines in home videogame sales.
Soon after that announcement, Sega Sammy chairman and chief executive Hajime Satomi said that Sega Corp.'s consumer game division would be downsized and restructured in the U.S. and Europe, triggering an unknown number of layoffs.
In early June, Sega Interactive head Miles Jacobson strongly denied recent reports by Gamekyo.com, a French website, that Sega Europe would be closed entirely.
Sources said coin-op game sales and arcade operations in Japan might also be subject to cuts, although both amusement divisions performed well last year.