Square Enix Announces Layoffs in Major Restructuring Move
Square Enix, the Japanese gaming giant behind franchises like Final Fantasy and Dragon Quest, has confirmed layoffs as part of a restructuring of its Global Games Publishing Group. The decision aims to streamline operations and refocus the company’s strategy amid shifting industry trends.
Scope of the Layoffs
While Square Enix has not revealed exact numbers, reports indicate job cuts affect employees in the U.S., Europe, and other regions, primarily in publishing and marketing. Some development teams have also been impacted. Severance packages and outplacement support are being provided.
The move follows a wave of layoffs across the gaming industry, with companies like Microsoft, Sony, and EA also downsizing due to economic pressures and post-pandemic adjustments.
Reasons Behind the Restructuring
Square Enix cited the need to “adapt to the rapidly changing gaming landscape” in its official statement. Recent years have seen highs (Final Fantasy XVI, Octopath Traveler II) and lows (Forspoken, Babylon’s Fall), prompting a shift toward fewer, higher-budget titles.
President Takashi Kiryu emphasized a new multiplatform strategy and profitability focus, aligning with industry trends toward live-service and mobile gaming. The company has also experimented with blockchain and NFTs, though reception remains mixed.
Industry and Employee Reactions
Analysts are divided—some call the layoffs a necessary pivot, while others criticize leadership’s prior decisions. On forums like ResetEra and Reddit, employees voiced frustration, with one anonymous source stating: “Talented people are paying for management’s mistakes.”
What’s Next for Square Enix?
Despite cuts, major releases like Final Fantasy VII Rebirth, Dragon Quest XII, and Kingdom Hearts remain on track. The restructuring may signal deeper bets on live-service models and mobile, though fan skepticism persists.
The Bigger Picture
Square Enix’s move reflects industry-wide challenges: rising costs, platform competition, and volatile demand. Success hinges on delivering hits that justify its new direction.
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