Square Enix Layoffs — Current Square Enix CEO Takashi Kiryu confirmed that layoffs will be happening for the North America and Europe branch in the following months. Rumours have it that this unfortunate approach may be caused by the recent “Square Enix Multiplatform Development” plan.
While the exact scale wasn’t mentioned, it is believed that their IT, publishing, and a collective of indie game divisions will be severely impacted.
GD reached out to Square Enix to confirm the report, to which they replied “After several months of analysis and discussion among our leadership team, we have made the difficult decision to restructure our Western organization,”.
An insider also told VGC that after the internal meeting on Monday, many of Square Enix’s main Slack channels were locked.
SQEX Multiplatform Development Plans
The company has recently engulfed a total loss of $140 million as part of its large-scale restructuring by cancelling out multiple unannounced titles as well as elevating new groups of creators as part of its medium-term business plan. They hope that the change will eventually result in long-term growth for the company.
Going forward, Square Enix also plans to “aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox and PCs” in the hope that it will be able to “build an environment where more customers can enjoy our titles in regards to major franchises and AAA titles, including catalogue titles,”
While not strictly mentioned, this direction is likely influenced by underwhelming sales of its two Final Fantasy games; Final Fantasy XVI and Final Fantasy VII Rebirth. On the flip side, Final Fantasy XIV achieved moderate success when it was introduced to Xbox X/S earlier this year.
Bottom line
Square Enix recently announced layoffs for its western branch as part of its restructuring plans. The announcement also happens to coincide with its major loss of revenue due to its operational shift with one of them being to expand their future games to multiple consoles as well as PCs; costing them a $140 million loss.
Takashi Kiryu believes that their new multiplatform shift is necessary to achieve long-term growth. Meaning that it is likely their upcoming games will no longer be limited to PlayStation 5 but also Xbox X or Xbox S and PC; even Nintendo.
