SEGA Asks 650+ Employees to Retire as a Result of Financial Struggles during COVID

[Champion]

SEGA SAMMY HOLDINGS INC. (the Company) hereby notice that the call for voluntary retirement of employees and reduction in the amount of compensation of directors has resolved at Board of Directors meeting held on November 6, 2020 as described below. The Company also announce that it expects to record an extraordinary loss in the operating results of the fiscal year ending March 2021 due to the call for voluntary retirement.

1. Reasons for call for voluntary retirement of employees

As stated in the "Notice Regarding Full-Year Consolidated Operating Results Forecast" announced on August 5, 2020, in light of the situation that many of our Group's business are significantly affected by COVID-19, we have established a Structural Reform Committee to reform our organization structure to adapt to the external environment and working to 1) review the balance sheet for non business properties, 2) build an organizational structure that can adapt to changes in the market environment, and 3) reduce costs centered on group-wide fixed expenses (reduction target of 15 billion yen).

2. Overview of the call for voluntary retirement of employees

(1) Eligible Applicants: Full-time employees and contract employees of our Group Companies
(2) Number of Applicants : 650 employees (Number of employees as of September 30, 2020: 9,051)
(3) Application Period : November 16, 2020 to December 25, 2020
(4) Retirement Date: February 28, 2021
(5) Preferential Treatment : Payment of extraordinary retirement allowances and reemployment support for applicants

https://www.segasammy.co.jp/english/pdf/release/20201106_kibo_e.pdf

 

[Gizmo_Duck]

They are about to be on the auction block soon.

Kinda sad they went from Dreamcast to this. They going out bad. I hope another japanese company gets them though, even Nintendo

 

[Obreh Winfrey]

My company has done this several times in the few years I've been there. Probably cheaper to let people take the a buyout package than to fire them outright. But not enough people will take advantage and then there will be some heartbreaking layoffs.

 

[Champion]

Pray for Atlus brehs.

 

[Bathing Ape]

M$ about to scoop them

 

[QuintessentialBM]

MS buying Sega has legs now... Will keep tabs.

 

[Batsute]

Sammy ruined them. All that focus on pachinko, sonic-focused, and shyt movie licensing games did them in. Okawa must be rolling in his grave.

 

[Akae Beka]

Stay tuned

 

[Gizmo_Duck]

That’s why i gotta laugh when people act as if the american government is oppressing them by asking them to stand 6 ft apart and wear masks. Like this shyt is global and its affecting businesses everywhere.

 

[Grand Conde]

This is their arcade business, not the video gaming side

 

[Grand Conde]

MS buying Sega has legs now... Will keep tabs.

M$ wants to take over all of Sega's pachinko stuff?

 

[the_FUTURE]

it's all jokes until it's a company that has a special place in your heart.

 

[ORDER_66]

it's all jokes until it's a company that has a special place in your heart.

Sonic 1,2 and 3...

 

[QuintessentialBM]

This is their arcade business, not the video gaming side

M$ wants to take over all of Sega's pachinko stuff?

It doesn't matter because it's all under the Sega/Sammy umbrella. Asking your employees to take "voluntary retirement" is a bad look.

Whatever it takes to get the IP's...

 

[TripleAgent]

They are about to be on the auction block soon.

Kinda sad they went from Dreamcast to this. They going out bad. I hope another japanese company gets them though, even Nintendo

Ayo Phil!