Relic Entertainment recently announced its independence from Sega with the help of an external investor. Despite assurances that this change would not impact its current projects like Company of Heroes 3, the company proceeded to lay off 41 employees, as shared by external development producer Robyn Smale on LinkedIn.
In an official statement on LinkedIn, Relic confirmed the layoffs, stating that the decision was made in order to ensure the company’s survival in a rapidly changing industry landscape. The company emphasized that the layoffs were not a reflection of the impacted employees’ expertise, passion, or character.
The split between Relic and Sega occurred as part of Sega’s cost-saving measures, which also involved layoffs internally and at studios like Creative Assembly and Hardlight. According to an email obtained by IGN, Sega Europe head Jurgen Post explained that these actions were necessary to streamline and focus on core strengths to navigate future challenges in product development and market positioning.
Relic and Sega now join the growing list of game companies that have implemented layoffs in 2023 and 2024. Data from videogamelayoffs.com reveals a significant number of layoffs in both years, with estimates exceeding 8,000 in 2024 and over 10,000 in 2023.