Earlier this year SEGA threw its hat in the ring to keep the streak of layoffs in the games industry going with a layoff that saw the sale of Relic Entertainment and 240 people lose their jobs.
That restructuring and mass layoff is reportedly the cause for the Sonic company losing 6.6 million Yen and a had a drop in its operating profit.
Reported by Japanese website Gambiz (translated by Automaton-Media), these losses are responsible for an 86.7% drop in profit for its last fiscal year which ended on May 31, 2024.
That 6.6 million Yen is approximately $41 million USD, so it’s by no means a small chunk of change. Still, it’s in no way comparable to the actual loss that was those 240 employees.
The loss of talent, of generational knowledge and systems is always far more devastating in the long-term than the financial pitfalls that may come in the short-term.
These lost profits are just another example of how layoffs are never worth it.
Source – [Gamebiz via Automaton-Media]