As Sega Sammy announced it’s selling off its arcade business, the Tokyo-based game company also announced that it is asking 650 employees to retire voluntarily. With covid-19 impacting business, Sega is expecting what it calls “an extraordinary loss” during the current financial year.
Sega Sammy Holdings was formed after Sega and Sammy merged in 2004.
According to the company, the global pandemic has “significantly affected” business, which is why the company is selling its arcade business.
“However,” Sega Sammy continued in an official announcement, “in order to recover earnings at an early stage and achieve sustainable growth in the future, we consider that it is necessary to promote cost-reduction centered on fixed expenses and build an even more efficient system and decided to call for voluntary retirement of employees.”
Sega Sammy is asking 650 full-time employees to voluntarily retire, giving all those who choose to do so “payment of extraordinary retirement allowances and reemployment support for applicants.”
What’s more, Sega Sammy is slashing the salaries of its executives. The company’s Representative Director is getting a 30 percent monthly pay cut, while the Senior Executive Vice President is dropping 20 percent, and the Senior Vice President is seeing 10 percent come off his monthly pay. Among Sega Sammy’s group companies, there will also be pay cuts for top management. Sega Sammy will also not pay performance bonuses to the company’s directors based on this year’s financial forecast.
According to Sega Sammy, the company expects to record around 10 billion yen ($96.6 million) in losses during the financial year ending next March.