[STEAM] Square Enix Undergoes Mass Layoffs As It Reorganizes to Consolidate Development in Japan

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Square Enix is undergoing mass layoffs today, potentially impacting over 100 individuals, alongside a broader effort to consolidate its publishing organization and focus its development work in Japan.

Via public posts from former employees as well as confirmation from internal sources, IGN has learned that employees in the *** and US are being informed of the layoffs today, with an unknown number of US employees being dismissed by the end of the week, and a possible 137 jobs at risk in the ***. Under *** law, Square Enix must undergo redundancy consultations to see if any jobs can potentially be saved, so the final number in the *** could be smaller. It is not yet clear which teams were impacted by this, or to what extent.

Internally, a slide presentation

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was also shared with employees earlier today, offered a progress report on Square Enix's ongoing "reorganization of overseas organizations", of which this restructuring seems to be a part. Per Square Enix, the strategy has already involved "clos[ing] overseas development studios and shift[ing] toward consolidating development functions in Japan."

As a part of this, Square Enix already sold Crystal Dynamics, Eidos-Montreal, Square Enix Montreal, and a number of associated IPs to Embracer Group. It also already

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.

That leaves Square Enix with the Life Is Strange, Outriders, and Just Cause franchises currently managed by its Western studios, as well as the publishing of Powerwash Simulator.

In that same presentation, Square Enix also shared that it expects 70% of its QA work to be handled by generative AI by the end of 2027. The company has

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that it intends to be "aggressive in applying AI" across both development and publishing.

IGN has reached out to Square Enix for comment.

Rebekah Valentine is a senior reporter for IGN. You can find her posting on BlueSky @duckvalentine.bsky.social. Got a story tip? Send it to [email protected].

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