SOA Statement Confirms Layoffs, Buyouts, Boom TV Support in Relocation

Sega Sammy’s statement on Sega of America’s restructuring noted “voluntary retirement” options being offered to up to 300 employees company-wide, including 120 within the Sega division.

A second statement released by SOA tonight, however, shows there will be layoffs in addition to buyout offers on the American side, as the division moves south to a currently unknown location in southern California.

The statement, which we have relayed in full below, includes remarks from Sega COO John Cheng. It also confirms the Sonic Boom TV series will continue its run on Cartoon Network. The statement claims the company’s current game release schedule will not be impacted. That’s good news, considering Sega producer Stephen Frost Tweeted this out today, affirming several localizations appear to still be on track:

It makes me feel all warm and gooey inside to see #Sega bring titles like Yakuza and Fighting Climax to the West. Hope everyone enjoys them.

— Stephen Frost™ (@frostman007) January 29, 2015

The remarks are below. Our coverage continues as our team of reporters continues to search for new information and talk to sources to bring you the complete picture of what is happening at Sega. If you know anything, please tip us; you can ask to remain anonymous.

SEGA of America (SOA), the North American operations for one of the world’s leading interactive entertainment companies, today announces its move from San Francisco to Southern California amid a downsizing of the business that will begin from January 2015 to early summer. The announcement was made today by SOA president and COO, John Cheng.

“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 Cheng. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”

Relocation packages are being offered to a number of employees, but there will be positions reduced from the company to streamline operations. The total number of employees affected by this move will be realized after the complete transition is finalized in early summer.

Cheng added, “We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.”

SEGA’s game release schedule will not be affected by the move. The Sonic Boom television series, currently airing on Cartoon Network in the U.S., will also continue its run through 2015.