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Sega of America has announced today its reorganization process which includes the closure of its San Francisco headquarters, layoffs, and a switch of focus to digital games. The American branch of the Japanese gaming company will move to Southern California.
“This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more,” said John Cheng, President and COO of Sega of America. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”
A certain number of employees will have the option to take a relocation package, but about 300 people may lose their jobs for SOA to “streamline operations.”
As seen in its financial release, the company says: “As part of these measures, SEGA has positioned Digital Games, centered around smartphone and PC online gaming, as a growth area and has determined to implement the following measures in order to constantly post profits by improving management efficiency while promptly promoting redistribution of management resources.”
Additionally, “Sega of America, Inc. based in San Francisco will be relocated to Southern California by this summer and its existing office in San Francisco will be closed thereafter, which results in reducing fixed expenses, mainly in corporate functions. In addition, the Sonic and merchandising businesses will be reinforced to establish a structure which can generate stable profits.”
[Sources]: Sega of America: SEGA of America Relocates to Southern California & Notice of Implementation of Structure Reform in SEGA Corporation.