Square Enix Preparing for Layoffs in U.S. and Europe Amid Heavy Restructuring - IGN

Square Enix will be the latest publisher to undergo layoffs in the U.S. and Europe amid extensive restructuring, VGC reports.

Square Enix president Takashi Kiryu reportedly confirmed that layoffs will take place in the U.S. and Europe during an internal town hall on Monday. IGN can confirm that the town hall took place and that workers within Square Enix are bracing for layoffs as a result. According to VGC, many of Square Enix’s internal Slack channels were locked following the meeting.

According to the report, Square Enix’s publishing arm, IT, and indie division are among the areas that will be most affected by the layoffs. The scale of the layoffs has not been confirmed.

IGN has reached out to Square Enix asking for confirmation of the layoffs and an official statement.

The reports of layoffs follow Square Enix’s announcement of a significant reboot in the wake of a financial year that saw its profits drop by 15.8 percent. Square Enix finances has been under increased scrutiny of late due to reports of Final Fantasy VII Rebirth and Final Fantasy XVI failing to meet internal expectations.

Square Enix is plotting a three-year plan it hopes will spur long-term growth, including a shift to multiplatform development. Square Enix recently absorbed a $140 million “content abandonment” loss due to canceling multiple unannounced projects, and has reportedly elevated a new group of creators, according to a Bloomberg report.

Elsewhere, the games industry has continued to be rocked by layoffs and other cutbacks. Last week, Xbox shuttered Tango Gameworks and Arkane Austin, and publishers including PlayStation, EA, and Take-Two Interactive have suffered layoffs of their own.