Square Enix's new president plans fundamental review, as more lay-offs hit LA office
Square Enix's incoming president, Yosuke Matsuda, has started sharpening the axe of financial viability after the "extraordinary loss" of this last financial year. In a Square Enix Holdings briefing session, translated by Siliconera, Matsuda announces plans to review all elements of the business, with a view to focusing its direction on "what makes us successful".
"After having succeeded the important role as the president, I plan on reviewing all Square Enix duties, business and assets on a zero-based budgeting standpoint," Matsuda says. "Due to the radical change of environment, I’d like to fundamentally review what works and what doesn't work for our company, then cast all of our resources towards extending what makes us successful and thoroughly squeezing out what doesn't.
"As far as a concrete plan on what to expect from us, I will further explain it on another briefing session in the near future, so I kindly ask for your patience. Thank you for your support."
While Matsuda isn't due to step into the role until June, Square Enix have already begun to restructure. In a statement to Polygon, senior director of PR Reilly Brennan announced, "We can confirm that Square Enix's Los Angeles office has eliminated a number of positions as part of the corporate restructuring announced last week. This is an unfortunate situation and we are offering assistance and severance packages to any employees affected by this, we want to thank them for their hard work and sincerely wish them well in the future." This is in addition to the LA office lay-offs made back in December.
How SE's development studios will be affected by Matsuda's review is unclear, but sales figures suggest a change may be due. Tomb Raider, Hitman: Absolution and Sleeping Dogs all failed to meet expectations, despite Tomb Raider experiencing a record launch week for the series.