Square Enix is navigating a significant restructuring phase, leading to potential layoffs affecting over 100 employees. This move is part of a broader plan to streamline its publishing efforts and concentrate development activities within Japan.
Impact on UK and US Employees
Reports suggest that the layoffs are impacting employees in both the UK and the US. While the exact number of US job losses remains uncertain, up to 137 positions in the UK could be at risk. However, UK redundancy consultations might mitigate the final number of layoffs. It remains unclear which teams are most affected at this time.
Strategic Restructuring and Studio Sales
A presentation, now accessible to the public, outlines Square Enix’s ongoing reorganization of its overseas operations. This strategy has already seen the closure of overseas development studios, with a shift towards consolidating development in Japan. Notably, Square Enix has sold Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal, along with certain IPs, to Embracer Group. Additionally, the company has conducted layoffs across its Western branches earlier in 2024.
Currently, Square Enix maintains franchises such as Life Is Strange, Outriders, and Just Cause under its Western studios, along with the publishing rights for Powerwash Simulator.
Future Plans and AI Integration
In the same presentation, it was revealed that Square Enix anticipates that by 2027, 70% of its QA work will be managed by generative AI. The company has previously expressed its intention to be “aggressive in applying AI” across all development and publishing areas. This highlights Square Enix’s commitment to integrating AI technology extensively in the coming years.