Sega is selling Relic Entertainment and cutting 240 jobs in Europe

Sega has announced plans to sell Relic Entertainment and cut 240 jobs in Europe.

Vancouver, Canada-based Relic specialises in real-time strategy games including the Company of Heroes, Age of Empires and Homeworld series.

Sega said it is selling Relic to a holding company to be newly established by the UK investment company Emona Capital LLP, but that further details weren’t being disclosed due to the request of the transferee.

The majority of the 240 job cuts will be made at Creative Assembly and Sega Europe, with a smaller number also being cut at Sega Hardlight, all three of which are based in the UK.

Following a review of the medium-term line-up of its European studios, Sega also said it has decided to “implement write-downs of work-in-progress of some titles in development”. As a result, it expects to record a loss of 5.6 billion yen ($31 million) as cost of sales.

“Sega is working closely with Relic on this shift, and we wish them the best for the future,” newly appointed Sega Europe head Jurgen Post told staff (via GamesIndustry.biz).

“I want to sincerely apologise for the worry and understandable distress this news will cause, particularly for those directly affected. These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business.

“Change is necessary to secure the future of our games business, and to ensure that we are well placed to deliver the best possible experiences to our players going forward.

Further reading

Sega has cancelled Hyenas ‘and some unannounced games in development’

Update: Creative Assembly has confirmed it will be making redundancies across the company

“We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market.”

Sega Europe laid off 121 employees at Relic in May 2023. And last September, following the cancellation of some projects from its European studios including Creative Assembly’s Hyenas, it cut a further 250 jobs.