Sega Europe Sells Relic Entertainment and Axes 240 Jobs
Sega Europe is selling off Relic Entertainment, the developer of Company of Heroes 3 and Age of Empires 4, while laying off 240 workers across several studios. The layoffs are attributed to optimizing fixed expenses and a decline in profitability due to the economic downturn and shifts in the gaming industry. Relic Entertainment will operate independently with the support of an external investor, and Sega Europe expects to incur around $10 million in losses from the business restructuring. Meanwhile, Sega of America workers have ratified their first collective bargaining agreement, securing base raises, layoff protections, improved crediting for game developers, and just cause protections.