Square Enix Targets US, European Divisions For Layoffs After Poor Sales: Report

Square Enix Holdings Co (OTC:SQNXF) is reportedly preparing for layoffs as part of ongoing restructuring efforts.

According to VGC, citing an internal meeting held on Monday, Square Enix president Takashi Kiryu informed staff that layoffs would affect the company’s American and European divisions.

The cuts will affect employees in publishing, IT, and the indie games division, Square Enix Collective.

The specific number of layoffs was not disclosed.

See Also: Square Enix Commits To ‘Aggressively Pursue Multiplatform Strategy’ To Combat Profit Dip

Staff were told that those impacted would be informed within the week. In the UK, a one-month consultancy period will commence, following local employment laws, while US-based employees might leave their roles before June. Following the announcement, many of Square Enix's main Slack channels were reportedly locked.

The layoffs coincide with the company’s latest quarterly financial results, which revealed plans to “rebuild overseas business divisions from the ground up” and “optimize costs at its European and American offices via structural reforms.” This comes after a financially challenging year for Square Enix, marked by disappointing sales of its major games.

Moreover, in response to these setbacks, Square Enix has introduced a three-year strategy titled "Square Enix Reboots, and Awakens," aimed at diversifying its platforms.

The company announced plans to “aggressively pursue a multi-platform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs.”

Kiryu, who took over as CEO in June 2023, has been leading a significant reorganization of the company's development processes to address these challenges.

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