Sega of America is the latest games maker to issue layoffs, the company has confirmed to Edge.
Following rumors that 30 employees have been laid off, a rep for Sega said in an e-mail, "Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success."
The rep confirmed that "around 30 people" were laid off.
"The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavors."
Sega of America's cuts are the latest in a long string of layoffs across the games industry: EA, Crystal Dynamics, Free Radical, Midway, Factor 5 and Funcom are just a few who have laid off workers in recent months.
Unfortunate that people have lost their jobs, this recession is biting harder than I thought it was going to.....
All the more reason why SEGA and companies in general shouldn't be forking over disposable and low quality titles. Not many sales for the latest Sonic game or many of their titles in general last year is leading to SEGAs scaling back, and it's sad, because as a company they can do better- if not for us, then definately for the poor folks whose JOBS depend on it!
Copyright 2006 - 2009 Future Publishing Limited, Beauford Court, 30 Monmouth Street, Bath, UK BA1 2BW England and Wales company registration number 2008885