Relic Entertainment joins layoff list after splitting from Sega
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Relic Entertainment last week revealed that it was going independent from Sega with help from an “external investor.” Relic insisted to gamers that this would not affect its output with regards to its current game, Company of Heroes 3. However, external development producer Robyn Smale said on LinkedIn that the company laid off 41 employees following the new move.
The company confirmed the layoffs on LinkedIn, saying, “Letting people go was not an easy decision and was made solely with the goal of providing Relic the best possible chance to survive in an increasingly volatile industry. It does not in any way reflect the expertise, passion, or character of any of the impacted employees.”
Relic departed from Sega amidst the latter’s cost-saving measures. Sega Europe head Jurgen Post confirmed that the company was laying off multiple employees, both internally as well as at studios Creative Assembly and Hardlight. According to a company email obtained by IGN, Post said the layoffs were necessary to “streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market.”
Relic (and Sega) both join the ever-growing list of games companies that have laid off employees in 2023 and 2024. According to videogamelayoffs.com, the current number of estimated layoffs so far in 2024 is around 8,000, while 2023’s layoffs are estimated to be in excess of 10,000.