Sega has proposed six hundred and fifty workers to take voluntary leave, as a measure to curb the economic problems that the Japanese company currently suffers.

Sega executives have also decided to reduce their salary, while the company continues to be affected by the effects of the COVID-19 pandemic.

Precisely this week Sega announced that it was going to sell its entire recreational division, one of the sectors most affected in Japan by the pandemic. GENDA, another company specialized in recreational, will be the new owner.

Sega had 9,051 workers as of September 30, 2020, and has a record loss forecast for this fiscal year. That is why reducing staff costs seems like one of the most logical solutions to stop the economic drain.

In statements to Eurogamer, the company explained that these voluntary redundancies are being offered only to employees in Japan, and that its business in the West is not affected by these measures. This implies, for now, that jobs at studios like Creative Assembly, Relic Entertainment or Sports Interactive are safe.

The retirement and voluntary termination plan will be available to workers until February 28, 2021. Those who take advantage of it will receive financial compensation and help when it comes to finding another job.

Regarding managers, the salary reduction ranges between five and thirty percent in their monthly salary. The reduction will apply for five months, until March 2021, and also this year the managers will not receive any bonuses.

In the first quarter of the current fiscal year Sega announced losses of 2.5 billion yen, “caused by the impact of COVID-19.” In the second quarter, those losses soared to 18.4 billion yen. For the third quarter, which covers October through December, the company expects even more losses, including 10 billion yen in voluntary termination expenses.

This whole situation may call your attention, given that video game sales were going quite well and expectations were positive with the next release of titles like Yakuza: Like a Dragon or Football Manager 2021, this month, or Puyo Puyo Tetris, Humankind or Shin Megami Tensei 5 before the fiscal year ends. The problem, of course, is that Sega is much more than a video game company: they also have a pachislot and pachinko business, a resort business and an animation and toy business, for example, all of which have been greatly affected by the economic crisis that occurred. for the global coronavirus pandemic.

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