Key Takeaways
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- Square Enix has undergone significant restructuring, resulting in job cuts at its Western studios.
- The layoffs are part of a plan to centralize operations in Japan, with the aim of consolidating marketing, publishing, sales, and other administrative functions.
- Square Enix is partnering with Matsuo-Iwasawa Laboratory at the University of Tokyo to accelerate development of their AI assistant, aiming to automate 70% of quality checks by 2027.
- The restructuring is projected to save the company approximately $19.6 million. However, its important to note that these layoffs are not directly related to the companys AI initiatives.
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Square Enix Announces Major Restructuring, Layoffs in Western Studios for Centralization in Japan
Square Enix conducted layoffs at its Western studios on Thursday, June 6, as part of a major restructuring to centralize operations in Japan. Square Enix president Takashi Kiryu announced the job cuts during a video call with non-Japanese employees, also stating that remaining staff would be required to increase their time in the office during the transition. While Square Enix has not disclosed the total number of affected employees, a former employee reported approximately 140 layoffs at the company’s London office. On the same day as the layoffs, Square Enix announced a partnership with Matsuo-Iwasawa Laboratory at the University of Tokyo to accelerate the development of its AI assistant, with the goal of automating approximately 70% of quality checks by 2027. However, according to Jason Schreier, writing on Bluesky, the layoffs are not directly related to the company’s AI initiatives but are instead part of the centralization plan, which aims to consolidate marketing, publishing, sales, and other administrative functions in Japan and is projected to save the company around $19.6 million.
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