Sega Sammy Holdings Inc., the parent company of Sega and Sammy, has asked a total of 650 full-time and contracted employees to consider voluntarily retiring from the company after selling 3.51 million of approximately 9.45 million shares of Sanrio. The company expects a loss of approximately 10 billion yen ($97 million USD) as a result.
“In order to recover earnings at an early stage and achieve sustainable growth in the future, we consider that it is necessary to promote cost-reduction centered on fixed expenses and build an even more efficient system and decided to call for voluntary retirement of employees,” Sega Sammy said in an official announcement.
Employees aren’t the only ones experiencing a loss caused by this decision, their directors will also be receiving a pay cut. The president Haruki Satomi will also be seeing a 30% reduction in salary while the Senior Executive Vice President is reduced by 20 percent and the Senior Vice President is receiving a 10 percent cut. Bonuses will not be paid this year.
The COVID-19 pandemic has greatly impacted the gaming industry, causing the entire company to loose financially. Those who choose to accept the company’s retirement offer have until December 25 to apply and will leave the company on February 28, 2021. They will receive “payment of extraordinary retirement allowances” and Sega Sammy will support their search for new employment.