SEGA, the creator of Sonic the Hedgehog, is facing backlash after allegedly threatening to terminate approximately 80 employees who recently formed a union. The Communications Workers of America (CWA) has filed an unfair labor practice complaint, claiming that Sega of America failed to engage in negotiations before informing the workers that their positions would be given to individuals from Japan and Europe.
According to Kotaku, SEGA had proposed gradually phasing out all temporary employees on November 6. However, the affected employees were informed about their potential job loss through a mandatory meeting, potentially violating union regulations. These regulations require Sega of America to communicate with the union rather than directly with the employees. As several employees on the verge of being laid off are members of the Allied Employees Guild Improving Sega (AEGIS-CWA) union, the CWA has taken action.
AEGIS-CWA, which currently represents 200 employees across Sega of America, became the largest multi-department union in the gaming industry as of July 11. If the layoffs proceed, Sega of America would lose 40 percent of its unionized workforce.
| Company | Layoffs |
|---|---|
| Unity | Announced substantial layoffs in the upcoming quarter |
| Amazon Games | Laid off 180 employees this week |
| 100 Thieves | Reduced workforce for the second time this year |
| Twitch | Laid off 400 employees in March due to increased competition |
Layoffs have become a prevalent issue in the gaming industry, with numerous companies experiencing workforce reductions at various stages of game development and publishing. This trend is expected to continue as competition intensifies and companies adapt to market demands.
Source: DOTESPORTS
