Given the mixed performance of Square Enix titles in recent years, it’s no surprise the Japanese publisher is reorganizing. The company is in the midst of a “three-year reboot” as it seeks to refocus its strategy on quality over quantity. The goal is to have consistent, major IP releases on multiple platforms, as opposed to their current scattershot approach. Given the underwhelming response to titles like Final Fantasy XVI and Dawntrail, many gamers may be optimistic at the renewed focus on better development. But as with all companies that miss their financial targets, reorganization isn’t enough.
Layoffs for SE Overseas Divisions
As reported by IGN, Square Enix’s reorganization efforts have led to cost-cutting measures at its overseas offices. As a result, employees at the company’s overseas offices are being laid off throughout this week. While the exact numbers are unknown for the United States, up to 137 jobs are at risk in the UK. Per British law, Square Enix’s London office must go through redundancy consultations and try to reduce layoffs. It is unknown at this time which teams are impacted.
One reason, as stated in Square Enix’s Medium Term Business Plan, is consolidating development towards the Japanese branch. The company is focusing on reducing organizational bloat where possible, with one page mentioning their HD Games publishing going from 11 to 4 divisions. Square anticipates savings of up to 3 billion yen because of overseas reorganization. They also plan to pursue AI integration, pushing for generative AI to handle 70% of QA by 2027.
Square Enix’s Statement
The week’s layoffs are only the latest cost-cutting measures from the company. Square Enix previously laid off western employees in 2024. In addition, they’ve sold off some of their western studios: Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal along with associated IPs. While the publisher seeks to consolidate development and ensure consistency, they won’t shy away from reducing headcounts where they deem appropriate.
When asked for a statement, Square Enix provided the following to IGN:
“We are reorganizing our operations in North America and Europe to strengthen our development structure and to drive a globally integrated marketing strategy.
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.
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.”
Sourced from IGN. For more coverage, check out our other games section.
