Relic Entertainment Faces Layoffs After Sega Sale

In a significant turn of events for the gaming industry, Relic Entertainment, known for its iconic real-time strategy games, faces a round of layoffs merely a week after its transition to an independent studio post-Sega’s sale.

Relic Entertainment, headquartered in Vancouver, Canada, has been a powerhouse in the gaming world, delivering memorable titles such as the Company of Heroes, Age of Empires, and Homeworld series. However, the recent announcement of layoffs has sent shockwaves through the gaming community.

Although the precise number of affected employees was not disclosed publicly by the company, Robyn Smale, Relic’s external development producer, acknowledged the departure of “41 amazing people.” This decision, according to the studio, was made with the sole objective of ensuring Relic’s survival in an industry marked by increasing volatility.

In a statement addressing the layoffs, Relic emphasized that the unfortunate decision does not undermine the expertise, passion, or character of the impacted employees. The studio pledged to provide support to those affected, including severance packages, extended benefits, and outplacement assistance.

The recent restructuring in the gaming landscape began when Sega announced the sale of Relic Entertainment to a holding company established by UK investment firm Emona Capital LLP. This move was part of Sega’s broader restructuring efforts within its European arm, which also involved significant job cuts.

The brunt of these cuts affected Creative Assembly and Sega Europe, both based in the UK, with Sega Hardlight also witnessing a smaller number of layoffs. Last May, Sega had previously laid off 121 employees at Relic, just before the studio’s latest release, Company of Heroes 3, expanded its platform reach from PC to consoles.

Despite these challenges, Relic remains committed to supporting its existing games while endeavouring to create new experiences for its global fan base. However, the recent wave of layoffs underscores the unpredictable nature of the gaming industry, where even established studios like Relic face the ever-looming threat of instability.

As the gaming landscape continues to evolve, the fate of Relic Entertainment serves as a poignant reminder of the challenges and uncertainties inherent in the pursuit of creativity and innovation within the gaming sector.