Square Enix announce mass layoffs, with over 100 UK staff reportedly expected to be at risk


Final Fantasy developers and publishers Square Enix have announced plans to lay off staff, with workers across “nearly all areas” of their Western business arms being affected. More than 100 UK staff are reportedly expected to be affected, with an indeterminate number of US-based workers also reportedly facing a future that’s up in the air. The reasoning given for the cuts centres around that depressingly ever-present word nowadays – restructuring – as Square look to cut costs and consolidate their focus around their Japanese development base.

VGC report that Square Enix president Takashi Kiryu dubbed the move “a fundamental restructuring of the overseas publishing organization” in an all-hands meeting with staff yesterday, with it being confirmed that folks will lose their jobs and those left will have to spend more time working in-office. In a presentation to investors, Square Enix outlined that they expect this restructuring of “An overly layered and segmented organizational structure” to save them at least 3 billion yen annually, which is around $19.6 million and £14.9 million.

Both VGC and IGN report that at least around 140 jobs are at risk among Square Enix’s UK-based staff, with the former report saying this includes workers in IT, marketing, publishing, sales, QA, and business planning roles. As per UK law, the company will have to enter into redundancy consultations, which could result in some jobs being saved. VGC add that staff in Square Enix Europe’s indie games division (dubbed Collective), external studios development and brand marketing, and Japanese communication support teams have been informed they may be let go. No numbers have been reported in terms of the US cuts.

“This was an extremely difficult decision, made following careful consideration and analysis by our leadership, in order to best position the Group’s long-term growth,” Square Enix said in a statement given to IGN. “We extend our heartfelt gratitude to the talented team members who will be departing the company for their significant contributions to Square Enix. During this period of transition, we remain committed to treating each individual with the utmost respect and providing extensive support throughout this process.”

Meanwhile, Bloomberg’s Jason Schreier has reported that these mass layoffs aren’t related to Square Enix saying in their latest financial results that they want to use generative AI to automate 70% of the QA and debugging tasks required in developing their games by the end of 2027. That’s not to say that goal doesn’t have the potential to result in more layoffs down the line, but it’s not to blame for these specific ones.

Solidarity to everyone affected by these mass layoffs at Square Enix.



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