Sega Announces Japanese Layoffs In Quest For Profitability

Sega Corporation is currently the parent of 58 companies. All of the planned layoffs will occur from Sega's Tokyo headquarters, according to company representatives. The company's staff peaked at 1,081 this past January, and will be reduced to about 700 by March 2002. A company spokesman said that approximately 200 people have already left the company in a voluntary retirement plan, leaving a balance of about 180 people that will be affected. Tetsu Kayama, Sega's COO, said that the decision surrounding which companies Sega will divest from will be based upon whether the companies are important to Sega's strategy, and the degree to which they are profitable. On paper, the value of Sega's total investment in these 58 companies is about $115 million.