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Sega Japan is Asking 650 Employees to Voluntarily Retire
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Sega Japan is Asking 650 Employees to Voluntarily Retire

by Aiman MaulanaNovember 17, 2020
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Sega Japan is Asking 650 Employees to Voluntarily Retire 24

It looks like things aren’t going great for Sega as of late as they have recently requested 650 of their employees in Japan to voluntarily retire.

Sega Japan is Asking 650 Employees to Voluntarily Retire

Sega Japan is Asking 650 Employees to Voluntarily Retire 25

According to Sega Sammy Holdings, COVID-19 has had a severe impact to their business and they are expecting “an extraordinary loss” in the current fiscal year. As such, they are asking their 650 employees in Japan to voluntarily retire. Previously, the company has sold off their arcade business due to the pandemic.

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 Holdings

For those who choose to voluntarily retire, they will be getting “payment of extraordinary retirement allowances and reemployment support for applicants.” They are also cutting down the salaries of their executives.

This includes the Representative Director getting a 30% pay cut, Senior Executive Vice President getting a 20% pay cut, and the Senior Vice President getting a 10% pay cut. Within their group companies, there is an expectation for more pay cuts in top management, and the company will not be paying performance bonuses for the directors based on current year’s financial forecast.

At the moment, Sega Sammy Holdings, which was formed after the merger of Sega and Sammy in 2004, expects a ¥10 billion / USD $96.6 million loss in the current fiscal year which ends on March 2021.

Source

Pokdepinion: We’re facing tough times and it’s affecting the whole world. It still surprises me that a company like Sega has to do this but understandably, they need to figure out how to keep the business going.

About The Author
Aiman Maulana
Jack of all trades, master of none, but oftentimes better than a master of one. YouTuber, video editor, tech head, and a wizard of gaming. What's up? :)