Relic Entertainment has joined a growing of list of game companies conducting mass layoffs. This happened just a week after the studio went independent from SEGA.
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The job cuts at Relic were first reported by external development producer Robyn Smale, who wrote on LinkedIn that the studio laid off 41 employees. “It’s been a bumpy road lately, so to most, this is no surprise. But still a shame, none the less,” the post reads.
Relic later confirmed the information on LinkedIn, saying that it had to reduce its headcount to continue to operate in the current market environment.
“Letting people go was not an easy decision, and was made solely with the goal of providing Relic the best possible chance to survive in an increasingly volatile industry,” the studio said in a statement. “It does not in any way reflect the expertise, passion, or character of any of the impacted employees.”
The company added that it will provide all those affected with “severance packages, extended benefits, and outplacement support options.”
On March 28, Sega sold Relic Entertainment to an external investor for an undisclosed sum as part of its structural reform. The studio became independent, saying that it will continue to support its titles, including Company of Heroes 3.
This is also the second round of layoffs at Relic over the past 12 months. Last year, Sega laid off 121 employees from the Vancouver-based studio.
According to the Game Industry Layoffs project, over 8,500 industry workers have already lost their jobs since the beginning of 2024, including 1,900 people at Microsoft’s gaming divisions, 301 at Sega, 900 at Sony Interactive Entertainment, 670 at Electronic Arts, and 530 at Riot Games. For comparison, the total number of layoffs in 2023 was 10.4k.