Sega Sammy reduces workforce in voluntary redundancy program. The program which was announced late last year in response to financial pressures as a product of COVID-19, intented to locate 650 staff to volunteer for retirement by offering special retirement allowances and re-employment support for those who stepped forward.
On Friday, Japan’s Sega Sammy Holdings shared that the application period came to an end as of December 25, 2020 with 729 employees now set to depart the company on February 28. It had previously counted a workforce of 9,051 employees as of 30 September 30 2020.
In a filing, Sega Sammy disclosed that it had set aside JPY10 billion (US$96.3 million) in expected expenses to cover the voluntary redundancy program. However, the actual expenses are expected to be closer to JPY9.5 billion (US$91.5 million), which will be recorded as extraordinary losses in the fiscal year ending March 2021.
The firm expected to partake in Yokohama’s upcoming RFP to develop an integrated resort, said last year that, “Voluntary retirement is believed necessary to realize cost reductions focusing on fixed costs and building a more efficient system in order to achieve an early recovery of profits and sustainable growth in the future.”