In a significant restructuring move, gaming powerhouse SEGA has announced the sale of its renowned Relic Entertainment studio to an external investor, Emona Capital LLP. Simultaneously, the company plans to optimize its fixed expenses by reducing its workforce by approximately 240 roles across several European studios, primarily impacting Creative Assembly, SEGA Europe, and HARDlight.
The decision to divest Relic Entertainment, the studio behind popular franchises like Company of Heroes and Age of Empires, marks a strategic shift for SEGA. Relic will now operate as an independently-run development studio, though it has assured fans that it will continue to support its existing titles, including the recently released Company of Heroes 3.
In a statement, Relic Entertainment expressed excitement about this new chapter, emphasizing their commitment to creating amazing experiences for their players. “We want to assure you we will continue to support our titles, including Company of Heroes 3—we are looking forward to the 1.6 Update in April, loaded with new content and features requested by our community,” the studio said.
While the specific details of the Relic sale remain undisclosed at the transferee’s request, SEGA has expressed its gratitude for the studio’s contributions and wished them well in their future endeavors.
The workforce reduction, which primarily targets SEGA’s European operations, is part of the company’s efforts to streamline its operations and focus on its core strengths. Jurgen Post, the newly appointed head of SEGA Europe, acknowledged the difficult nature of these decisions, stating, “These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business.”
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Post further explained the rationale behind the restructuring, emphasizing the need to adapt to the changing economic landscape and challenges faced in developing and bringing products to market. “We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead,” he said.
The job cuts come on the heels of previous workforce reductions at SEGA’s European studios, including the layoff of 121 employees at Relic in May 2022 and a further 250 job losses in September 2022 following the cancellation of several projects, including Creative Assembly’s Hyenas.
As SEGA navigates these strategic changes, the company aims to optimize its operations and position itself for future growth in the highly competitive gaming industry. While the decision to sell Relic Entertainment and streamline its workforce may be tough in the short term, SEGA believes it is necessary to secure the long-term viability of its games business and deliver the best possible experiences to its players.
