Square Enix fires more than 100 in the UK and USA amid restructuring

Square Enix is carrying out mass layoffs this Thursday (6), in the midst of a broad effort to consolidate its publishing organization and focus development in Japan. The cut is a critical point that affects the western operation of the company, generating uncertainty about the future of teams outside of Japan.

IGN has learned, through former employees and internal sources, that the layoffs are hitting employees in the UK and USA. More than 100 people may be affected. It is expected that 137 positions are at risk in the UK. According to British legislation, Square Enix will have to carry out redundancy consultations, which may result in a lower final number of dismissals in the UK. An unknown number of employees in the USA are expected to be laid off by the end of the week. The affected teams and the full extent of the cuts are still unclear.

This restructuring is part of Square Enix's "reorganization of foreign organizations" strategy. An internal slide presentation, now publicly available, was shared with employees today to detail the company's progress report. Square Enix confirmed that the strategy has already involved "closing overseas development studios and consolidating development functions in Japan".

The trend of downsizing at Square Enix in the West has already resulted in the sale of Crystal Dynamics, Eidos-Montreal, Square Enix Montreal, and several IPs associated with the Embracer Group. The company had also laid off employees in its western operations in 2024.

Currently, the franchises Life Is Strange, Outriders, and Just Cause continue to be managed by Western studios of Square Enix, in addition to the publishing of Powerwash Simulator.

In a controversial initiative, the same slide presentation confirmed that Square Enix expects 70% of its quality control (QA) work to be done by generative AI by the end of 2027. The company had previously stated its intention to be "aggressive in applying AI" in both development and publishing.

Square Enix is in the midst of mass layoffs that will affect more than 100 people in the UK (137 positions at risk) and USA, as part of a restructuring to focus development in Japan. The company has already sold studios (Crystal Dynamics, Eidos-Montreal) and intellectual properties to the Embracer Group. Square Enix also plans to use generative AI to perform 70% of QA work by the end of 2027.