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Relic Entertainment lays off staff one week after being sold to Sega

Relic Entertainment, the maker of popular game series such as “Dawn of War” and “Company of Heroes,” has announced a new round of layoffs.

Last week, Sega announced that it would sell Relic Entertainment to private investors. This will allow Relic to operate independently and continue to make the games it is known for. This week, they announced layoffs, affecting nearly 50 employees.

The company announced the news on LinkedIn and said the layoffs were to give the company the most reliable foundation for survival in a turbulent industry.

“Following last week’s announcement that Relic is becoming an independent studio, we have some bad news today. Earlier today, we shared details with Relicans about layoffs. Laying off employees was not an easy decision to make,” The sole purpose is to give Relic the best chance of survival in an increasingly volatile industry. It does not reflect in any way the expertise, enthusiasm or character of any affected employee.

“We are working closely with those affected to provide severance, extended benefits and outplacement support options.

“For those of us who are saying goodbye, we are deeply sorry that things have come to this. We thank you for everything you have done for our studio and projects and wish you all the best.”

While Relic itself did not disclose the number of people affected by the layoffs, external development producer Robyn Smale said in a separate post that 41 people were laid off.

Relic Studios is responsible for popular games such as Warhammer 40,000: Dawn of War and Company of Heroes. Never a large-scale studio, they laid off 121 employees last year, so this latest round of layoffs is sure to shake the confidence of remaining employees.

Legacy layoffs in wider context

The gaming industry is indeed an extremely unstable industry right now. In the same announcement as the sale of Relic, Sega also announced that it would lay off 240 employees. At the end of February, PlayStation announced 900 layoffs. Microsoft laid off nearly 2,000 employees, leading the FTC to raise concerns about its acquisition of Activision Blizzard.

Even successful, growing studios and companies are laying off employees amid uncertainty, and the industry needs to find some kind of balance soon to continue operating as before.

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