"Square Enix is laying off developers in the UK and US as it reworks its game development structure to focus on its studios in Japan, Video Games Chronicle reports. The mass restructuring follows the publishers' 2024 announcement that it planned to "aggressively" apply AI to its development process. The total number of employees being laid off isn't yet public, but Video Games Chronicle writes that over 100 developers in the UK could be impacted, possibly up to 140."
"In a slide deck for investors spotted by IGN, Square Enix characterizes its "Overseas Structural Reform" as part of its goal of "consolidating development functions in Japan." The deck also notes that Square Enix is particularly interested in automating "70 percent of QA and debugging tasks in game development by the end of 2027" with artificial intelligence, which could be one reason it's trying to eliminate roles."
"Square Enix has made an ongoing number of attempts to pull out of Western game development in the last decade. The publisher appeared to play some kind of role in project cancellations at developer People Can Fly earlier this year, and before that, it initiated mass layoffs in 2024. Even earlier in 2013, Square Enix made large cuts to its US and European divisions, including selling studios like Eidos-Montréal, Square Enix Montréal and Crystal Dynamics to Embracer Group."
Square Enix is restructuring its game development by shifting focus to studios in Japan and laying off developers in the UK and US. Over 100 UK developers could be impacted, possibly up to 140, while US numbers remain unclear. An investor slide deck labels the move an "Overseas Structural Reform" and states an intent to consolidate development functions in Japan. The deck also targets automating 70 percent of QA and debugging tasks by the end of 2027 with artificial intelligence. Square Enix has previously reduced Western operations through layoffs, cancellations, and studio sales over the past decade.
Read at Engadget
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