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650 SEGA employees asked to resign due to losses this year

650 SEGA employees asked to resign due to losses this year

SEGA Sammy recently announced the sale of its arcade business. And now the company is making another “sacrifice”: it asks the 650 employees in the Japanese office to voluntarily resign. Due to the COVID-19 pandemic, SEGA expects “extraordinary losses” in the current fiscal year.

SEGA
SEGA

SEGA Sammy Holdings was formed following the merger of SEGA and Sammy in 2004. According to the company, the pandemic has “significantly affected” the business, so it is selling its arcade business.

“However,” added SEGA Sammy, “in order to recover early profits and achieve sustainable growth in the future, we believe that it is necessary to help reduce costs through fixed costs and create an even more efficient spending system. We also decided to urge employees to voluntarily fire. ”

SEGA Sammy will provide retired employees with prohibitive benefits and support in future employment. In addition, the company has cut executive salaries by 10-30%.

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