Sega sells off Relic Entertainment, will axe 240 jobs

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Sega Europe has informed employees that it plans to lay off 240 workers in the coming weeks, and that it is selling off Company of Heroes 3 developer Relic Entertainment.

According to emails sent to staff reviewed by IGN, word of the layoffs was issued to staff early this morning. In a conciliatory note by Sega Europe COO and regional managing director Jurgen Post, he revealed the company would be laying off 240 employees across Sega Europe and Creative Assembly. "A small number" of employees would be laid off from mobile game developer Hardlight.

Post apologized to employees for "the worry and understandable distress this news will cause, particularly for those effective," before going on to say the decisions were "necessary to secure the future of our game business."

He alluded to the "changing economic landscape" and ongoing development challenges as drivers for the layoffs. No word was made on if any studio leaders or publishing executives will exit the company. Multiple developers who worked on Hyenas indicated that unclear leadership allegedly led to a long, grueling development process that left its creators rudderless until film director Neill Blomkamp was brought in to establish a creative direction for the game.

Relic Entertainment is going independent

Canada-based studio Relic Entertainment, which recently released Company of Heroes 3, did receive some good news in the midst of these layoffs. The company announced on X (formerly Twitter) that it is becoming an independent studio thanks to the help of "an external investor" who went unnamed.

It will continue to support its previously-released titles, noting it intends to release an upcoming update for Company of Heroes 3.

"This is a huge change for us, but one thing does not change: we want to create amazing experiences for our players," the company stated. It thanked Sega for its support over the years and its guidance during the transition.

The studio hasn't indicated if it will lay off any workers as part of the shift.

We've reached out to Sega Europe and Relic Entertainment for comment on this story and will update it when a response is given.