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 UK 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 UK. Under UK law, Square Enix must undergo redundancy consultations to see if any jobs can potentially be saved, so the final number in the UK could be smaller. It is not yet clear which teams were impacted by this, or to what extent.
Internally, a slide presentation now publicly available 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 laid off workers across its Western operations in 2024.
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.
Square Enix has shared a statement with IGN confirming the layoffs, but did not respond to questions about the number of individuals impacted, what roles, or if any projects or specific studios were impacted:
We are reorganizing our operations in North America and Europe to strengthen our development structure and to drive a globally integrated marketing strategy.
This was an extremely difficult decision, made following careful consideration and analysis by our leadership, in order to best position the Group’s long-term growth.
We extend our heartfelt gratitude to the talented team members who will be departing the company for their significant contributions to Square Enix. During this period of transition, we remain committed to treating each individual with the utmost respect and providing extensive support throughout this process.”
In the same presentation shared today, 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 stated in the past that it intends to be “aggressive in applying AI” across both development and publishing.
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].
