In a disappointing development, the newly independent Relic Entertainment has revealed they just went through a new round of layoffs.
As reported by Video Games Chronicle, Relic did not officially provide a figure. A Relic employee posted on their LinkedIn that 41 employees were affected.
Relic shared this statement:
“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.”
In 2023, Relic was still part of Sega when they instituted cuts of as many as 121 employees. Last month, Sega sold Relic to a group of investors, who will be launching a holding company. We also know that Relic will continue to work with Sega, in particular to make future Company of Heroes games.
The popular trope online is that these layoffs are only happening because bigger video game companies were being irresponsible with consolidation; by buying out the smaller companies. But obviously that does not explain what happened here.
What we can guess happened here is that Relic’s investors made the company review their own business, and Relic had to make the call that certain employees and jobs could be let go.
And so we have to reckon with the knowledge that game company layoffs are happening because the companies are not making enough money to retain those employees. It’s likely that smaller companies, who make smaller games, may have discreetly quiet quitted themselves, as some of those developers retire and leave the video game industry for better paying jobs.
Relic’s statement seems to indicate that they are confident that they will be OK after this painful step. And of course, this wasn’t something they wanted to do, but it wouldn’t be comfortable to blame Relic for leaving Sega, or making some other perceived mistake that led to this.
We wish the best for the outgoing members of Relic, and hope they can find placement back in the video game industry.
