Sega Sammy redundancy scheme surpasses expectations

The company plans to spend about US$91.7m in the restructuring plan announced in November.

Japan.- Japanese gaming giant, Sega Sammy has announced that the results of its recent voluntary redundancy scheme surpassed initial expectations.

The company opened a scheme in November with the objective of reducing its staff of 9,051 by 650.

The company has announced that 729 people took up the offer. They will leave the company in February and receive extraordinary retirement allowances and reemployment support.

The scheme is part of a larger restructuring plan to adapt the company to the current business situation.

The plan intended to review the balance sheet for non-business properties, build an organisational structure that can adapt to changes in the market environment, and reduce costs centred on group-wide fixed expenses.

The plan included the transfer of its amusement centres business to GENDA.

Sega Sammy expects to spend about 9.5bn yen (US$91.7m) on voluntary redundancies. That will be recorded as extraordinary losses in the fiscal year ending March 2021.

In November the company said in a press release: “In light of the situation that many of our group’s business are significantly affected by Covid-19, we have established a Structural Reform Committee to reform our organization structure to adapt to the external environment”