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Sega restructures US, European operations, lays off 73

Sega West President Mike Hayes has told IndustryGamers that the company is currently implementing a major restructuring of its North American and European operations. The human cost will be 73 jobs (36 in San Francisco, 37 in London), which represents about 12 percent of Sega West's workforce. It's worth noting that these figures are separate from the recent shutdown of Sega Studios San Francisco.

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Kratos Spartan3073d ago

Not a word anybody wants to hear within their company. It's the boogeyman of the office world. That really sucks.

hoops3073d ago

Its tough for any company. This past recession saw many companies go under or restructure. Sony has been in restructure a few times and still is now.
It happens to the best of companies. All that matters is if they can biunce back and come back more profitible and stronger. Competition is important for consumer markets

lightningsax3073d ago (Edited 3073d ago )

Tough thing about it is that this restructuring is, in fact, restructuring. No beating around the bush about firing some lunkheads or "insubordination," these were people that did what Sega told them to do, and it didn't work out because Sega lost money over some awful decision-making up top. That sucks.

The refocusing on downloadable, smaller titles makes sense. For a while, I wanted to just pick up Yakuza 3 for the pick-up-and-play awesomeness that was Boxcelios. Small game, great art style, cool music, addictive. I wasn't concerned with the bigger game, and I couldn't drop 60 on it just for Boxcelios. They're very strong at small projects. Always have been - look at the low-tech GBA and DS Sonic Advance/Rush games for a glaring example. It was a second party behind the wheel in some cases, but those were well-executed due to great management also.

They're also very strong at great hardcore and artistically well-done titles, but they got rid of those when the original Xbox kicked it, (Shenmue 1 & 2, Rez, Panzer Dragoon Orta, Gunvalkyrie, and Jet Set Radio Future) because they didn't sell... because some gamers are stupid.

RIP Old Sega, and may these laid-off developers quickly find new jobs.

Kratos Spartan3073d ago (Edited 3073d ago )

You just had to say Sony didn't you. What are you trying to do. This is about Sega. You could have left that part out. I am aware, and I'm sure more people are, of the struggles alot of companies have had the past couple of years. You just had to mention Sony, of all companies. This site has put me on edge.

lightningsax3073d ago (Edited 3073d ago )

I love how your comment ends in "Edge!" Perfect pun.

But I don't think that's what Hoops is saying, because Sony's a great example of a company implementing a restructuring process that has worked wonders. If you look at their strategic design, they've moved to a company of siloed divisions working on their own features to including cross-communication and integration between groups. Kaz Hirai is one of the big facilitators in that move. His job is basically to bridge the gaps between what once were silos, bringing them together to create product convergence.

Yes, Sony has had to do this a few times, but that's because it's a learning organization. You have to take some risks to really improve sometimes, and some of those risks get fixed later.

This wasn't just a Sony thing, it was a bit of a Japanese thing in not going with the flatter, more networked model of organizational theory. They were still very top-down and isolated. Now it's different.

Hopefully Sega's doing a bit more of that right now, and at the very least they'll network and connect more with their actual consumers, instead of some projected cadre of consumers that buy mature titles on the Wii in mass quantities.

Kratos Spartan3073d ago

I wasn't trying to attack him or anything, it was more of a light humor comment. Hopefully he didn't get offended. We all know how this site is when people mention one of the big 3 in a non-related article. I don't mind anyones opinion about anything.

+ Show (2) more repliesLast reply 3073d ago
Abriael3073d ago

Hopefully the moron that decided the cuts on Yakuza 3 is between the ones that have been laid off.

Gago3073d ago

this isnt a bad thing

dont you get it?

sega is learning its lesson, it knows there has been bad management within the company and that games could sell alot better

now there firing the retards, and putting in new people who will use common sense

basically mean s sega is going to do alot better in the future

Enigma_20993072d ago

... the higher-ups cut their losses by sacking the lower-tier workers... so they can keep sitting around doing nothing while collecting a check...

...WHY do I make such a blatant statement, you ask? Because it's F*****' HAPPENING WHERE I WORK, TOO!!!!