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Square Enix Confirms Overseas Layoffs as It Targets 70% QA Automation by 2027

The publisher is reorganizing Western operations to consolidate development in Japan, projecting annual savings of more than 3 billion yen.

Overview

  • Square Enix said it is restructuring its North American and European businesses, confirming layoffs without disclosing totals.
  • Reports from the UK indicate up to 137 roles are at risk in London, with any redundancies subject to required consultation under local labor law.
  • The company’s investor presentation outlines a joint research effort with the University of Tokyo’s Matsuo‑Iwasawa Laboratory, with a team of over ten working to automate 70% of QA and debugging by the end of 2027.
  • The plan includes closing overseas development studios, consolidating development functions in Japan, and globally integrating management of intellectual property.
  • Square Enix pitches the changes as efficiency measures delivering more than 3 billion yen in annual savings, while industry figures such as Larian’s Michael Douse publicly warn of risks to QA quality and career pathways.