Square Enix has initiated significant layoffs across its Western offices as part of a drastic restructuring plan. Reports suggest that almost all departments are affected, with particular emphasis on its European and US branches. While the company has not yet disclosed the total number of employees impacted, sources suggest that approximately 140 staff members from the London office face redundancy.
Restructuring for Efficiency
This wave of layoffs was announced via an internal video call, following a progress report from Square Enix. The report also reveals the company’s ambitious plan to have AI handle 70% of its QA work by 2027. The restructuring aims to enhance global publishing capabilities and operational efficiency, as noted by Square Enix president Takashi Kiryu. The cuts are projected to save the company 3 billion yen annually, aligning with the goal to create a more “lean” and “agile” organization.
Shifting Focus Back to Japan
The restructuring strategy also involves relocating development efforts closer to the company’s core operations in Japan. This decision is part of a broader review of the development pipeline aimed at optimizing resource allocation and maximizing IP value. The move reflects a similar trend among other Asian developers, such as NetEase, which recently restructured by cutting its Western teams and closing studios to consolidate operations closer to home.