Square Enix is making significant changes, including layoffs that could affect over 100 employees. This move is part of a larger effort to streamline its publishing operations and focus more on development in Japan.
Reports from former employees and internal sources indicate that workers in the UK and the US are being notified about their job status. In the UK, up to 137 jobs might be at risk, but legal consultations could help reduce that number. It’s still unclear which specific teams have been affected.
A recent internal presentation shared with employees highlighted these changes. Square Enix is undergoing a reorganization of its overseas operations, which has already included the sale of several studios, such as Crystal Dynamics and Eidos-Montreal, to Embracer Group. Earlier this year, layoffs also occurred in their Western divisions, reinforcing this trend of downsizing.
Currently, Square Enix manages popular franchises like Life Is Strange, Outriders, and Just Cause, alongside publishing titles such as Powerwash Simulator. They have confirmed the layoffs but have not detailed the exact roles or projects impacted.
In a statement, they emphasized the need for this restructuring to strengthen their development processes and enhance their global marketing strategy. They acknowledged the difficulty of this decision and expressed gratitude to departing team members.
Additionally, they shared ambitious plans. By the end of 2027, Square Enix predicts that 70% of its quality assurance work will be handled by generative AI. The company aims to aggressively integrate AI into both development and publishing.
This shift reflects a broader trend in the gaming industry, where many companies are looking to leverage AI to streamline operations and cut costs. Gaming analytics show that companies investing in AI strategies have seen improved efficiency. As the market evolves, these changes may become a standard practice, reshaping how games are developed and tested.
For those interested in more details, you can read Square Enix’s official announcements here and here.
