Square Enix Cancels Projects and Plans Layoffs for Sustainable Long-Term Growth

Square Enix Cancels Projects and Plans Layoffs for Sustainable Long-Term Growth

14. May 2024 by Never

Square Enix has confirmed the cancellation of multiple projects that no longer align with its vision for long-term growth. The decision comes as part of a new strategic plan revealed in the company’s latest financial reports.

Internal Restructuring and Layoffs

Square Enix is undergoing significant restructuring, which includes laying off an undisclosed number of employees from its American and European divisions. This restructuring aims to address a substantial drop in the company’s estimated profits.

Departments Affected

The layoffs will primarily affect employees in the publishing, IT, and Square Enix’s Collective indie games division. Impacted employees will be individually informed later this week. Following the internal announcement, several of Square Enix’s main Slack channels were reportedly locked.

Square Enix confirms US, EU layoffs as part of restructuring
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Company-Wide Restructuring

Square Enix had previously indicated plans for a company-wide restructuring to counter its financial challenges. This strategy, now in action, focuses on “internal development” and a renewed emphasis on “quality over quantity.” This explains the cancellation of several unannounced projects that do not fit the company’s revised development approach.

New Strategic Plan for Growth

Square Enix’s president, Takashi Kiryu, outlined the new strategy in an internal meeting on May 14. The strategy includes a multiplatform pivot for AAA games as part of a medium-term business plan dubbed “Square Enix Reboots and Awakens.”

Goals of the New Strategy

  1. Multiplatform Development: Moving away from a PlayStation-centric approach, Square Enix plans to launch upcoming AAA titles on multiple platforms. Recent entries in the Final Fantasy series, such as Final Fantasy 7 Remake, Final Fantasy 16, and Final Fantasy 7 Rebirth, were released as timed exclusives on Sony’s console. This strategy aims to broaden the audience for future games.
  2. Strengthening Internal Development: The company aims to reduce reliance on external developers by enhancing in-house development capabilities. This shift is expected to improve the quality and consistency of future releases.

Canceled Projects

The projects that were canceled did not align with Square Enix’s revised strategy focusing on multiplatform development and strengthening internal capabilities. The company conducted a project-by-project review to determine which efforts were incompatible with their new approach to developing high-definition games.

Square Enix Reaffirms Commitment to Quality with Future AAA Titles

Despite the cancellations, Square Enix remains committed to delivering high-quality games. Future AAA titles will be designed to meet the revised objectives, ensuring they are developed internally and available on multiple platforms to reach a broader audience.