Square Enix has put employees out of work as the company confirmed that it will soon impose layoffs in its US and EU offices.

A hint of trouble is that Square Enix is "actively pursuing" multi-platform game development in its new "Medium-term Management Plan" revealed today. It was first revealed that the company had launched a strategy to "create a better future" and an initiative to win over PC users who represent a growing market."

Everything sounds fine, but the bad news was buried deeper in the document, Under the heading of "Restructuring the overseas business unit from scratch," Square Enix has started "optimizing the cost of its European and American bases through structural reforms."

If there is one thing we have learned over the past 1 and a half years of gaming industry carnage, then "optimization" and "rebuilding" are code words to eliminate work, and that certainly applies here too. The new strategy document makes no explicit reference to layoffs, but the VGC report said attendees at an internal meeting held earlier today were told that Square Enix's cuts at U.S. and EU locations would take place within next month. The number of employees to be laid off was not identified, but the report says the layoffs are expected to land on May 6 and will primarily affect Square Enix's publishing, IT, and indie・style Square Enix collective divisions. 

In a statement later sent to PC Gamer, Square Enix said, "After months of analysis and discussion among our leadership team, we have restructured the Western organization."

"This restructuring will, unfortunately, include a reduction in the overall number of roles across America and Europe." It will be. "We are grateful that the talented Square Enix team members will leave us and support them during this transition."

2023-24 has been absolutely brutal for the video game industry, and we've seen serious layoffs and complete closures at studios of all sizes — over 1 in 16,000 layoffs in the course of 2024, with no sign of slowing down as the year progresses. Just last week, just months after laying off more than 1,900 employees across its gaming division — which itself spentActiv6.687 billion to acquire Activision-Blizzard - Microsoft closed four studios, including Arkane Austin and Tango Gameworks, suggesting further cuts were coming.