John LittleFollowing on from a previous announcement where Square Enix highlighted the implementation of AI technologies to streamline “game development processes,” the company has now announced layoffs across its Western business.
President Takashi Kiryu told employees in a video call to staff outside of Japan that the company is implementing “overseas structural reform.” He further stated that it was to make the business more “lean” and “agile.”
During the call, there were no headcount figures shown. However, it was confirmed that roles would be cut, and that the retained employees would be required to spend more time in the office. It is currently understood that it will include staff across IT, marketing, publishing, sales, QA, and business planing.
This comes as Square Enix hopes to make annual cost savings of around 3 billion yen, which equates to $19.6 million USD. Previously, Square Enix has downsized its operations across the US and Europe over the past two years.
So, do you think this announcement is motivated by the implementation of generative AI into Square Enix’s business model? Please feel free to comment how you believe this will impact the company below.