Publisher Sega has released an official statement confirming comments by Sega West boss Mike Hayes last night, which broke the news that a total of 73 jobs are to be lost across its London and San Francisco office.
It reads as follows:
As of today Sega will implement a re-organisation of its businesses within the American and EMEA markets. The restructure reflects both the changing face of the global video games market and a need to improve efficiencies within the operation.
In recent years, digital platforms have taken an increasing share of video gaming revenues and we believe this growth is set to continue. Sega has already enjoyed commercial success within this new and exciting gaming medium and it is now the company's intention to fully embrace change and set a strategy not only to maximise revenues within the digital space but, through innovation and quality, take up a leadership position.
Therefore, the company will be creating a new Digital Division which will be based out of Sega's San Francisco offices. In a similar move to drive efficiencies for the company, Sega's London office will now act as a hub for the traditional console and PC side of the business.
As a consequence of this re-organisation, the company has made the reluctant decision to reduce headcount by 36 employees in the San Francisco offices and 37 in London.
The management team are confident that these necessary steps will benefit the company and allow it to continue to grow and adapt to the rapidly changing market.”