Square Enix is undergoing massive layoffs today that could affect more than 100 people, and there is a broader effort to consolidate its publishing organization and focus development in Japan.
From public posts by former employees and confirmation from internal sources, IGN has learned that employees in the UK and US were informed of the layoffs today, with an unknown number of US employees set to be furloughed by the end of the week and 137 UK jobs potentially at risk. Under UK law, Square Enix must undergo a redundancy consultation to see if any jobs can potentially be saved, so the final number of UK workers could be smaller. It is not yet clear which teams were affected and to what extent.
As part of this, Square Enix has already sold Crystal Dynamics, Eidos-Montreal, Square Enix Montreal and a number of related IPs to Embracer Group. That’s it too laid off employees in its western branches in 2024.
As a result, Square Enix is left with the Life Is Strange, Outriders and Just Cause franchises currently managed by its Western studios, as well as the publication of Powerwash Simulator.
In the same presentation, Square Enix also said that it expects 70% of its QA work to be handled by generative AI by the end of 2027. In the past, the company has stated that it intends to “aggressively apply artificial intelligence” in both development and publishing.
IGN has reached out to Square Enix for comment.
Rebekah Valentine is a senior reporter for IGN. Her posts can be found on BlueSky @duckvalentine.bsky.social. Have a story tip? Send it to rvalentine@ign.com.
