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Relic Entertainment, the company behind hit game franchises like Dawn of War and Company Of Heroes, has announced another round of job cuts.
Last week it was announced that Sega was selling the company to a private investor. This would allow Relic to operate independently and keep making the games it’s known for. This week, they announced layoffs affecting nearly 50 staff.
The company shared the news in a post on LinkedIn, stating that the layoffs were to provide the company with the surest footing for survival in a volatile industry.
“Following last week’s announcement of Relic becoming an independent studio, today we have some difficult news. Earlier today we shared details with Relicans about a layoff. 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. It does not in any way reflect the expertise, passion, or character of any of the impacted employees.
“We are working closely with those affected providing severance packages, extended benefits, and outplacement support options.
“To those we are saying goodbye to, we are deeply sorry that it has come to this. We thank you for everything you have done for our studio and our projects, and we wish you all the best.”
While Relic themselves did not share the number of people affected by the layoffs, External Development Producer Robyn Smale stated in a separate post that 41 people were laid off.
Relic is the studio that brought popular and acclaimed games like Warhammer 40,000: Dawn of War and Company of Heroes. Never a massive studio, last year they laid off 121 employees, so this latest round of layoffs is sure to shake the remaining staff’s confidence.
Relic layoffs in the wider context
The games industry is indeed an extremely volatile place at the moment. In the same announcement that they were selling Relic, Sega also announced that they would be laying off 240 staff. Late in February, PlayStation announced 900 staff cuts. Microsoft’s layoffs of nearly 2,000 staff lead to the FTC raising concerns over its acquisitions of Activision Blizzard.
Even successful, growing studios and companies are laying off staff amidst the uncertainty, and the industry needs to find some equilibrium soon to continue operating as it has been.
