Following this week's news that Sega Sammy is set to sell the majority of its shares in Sega Entertainment, the company has now announced that it is asking 650 employees to 'voluntarily retire' and will slash the salaries of top executives.
The company, formed by a merger of both Sega and Sammy in 2004, has revealed its plans in a newly-published Notice of Forecast document. As spotted by Kotaku, the notice reads, "In light of the situation that many of our Group's business are significantly affected by COVID-19, we have established a Structural Reform Committee to reform our organization structure to adapt to the external environment...
"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."
This call for voluntary retirement has been issued to a total of 650 full-time and contracted employees, asking for a retirement date of 28th February 2021. Those who choose to take the option will receive a "payment of extraordinary retirement allowances and reemployment support".
As noted above, it's not just the employees who have been affected. The document goes on to say that the company’s Representative Director's monthly salary will be cut by 30%, with the Senior Executive Vice President and Senior Vice President also getting 20% and 10% monthly cuts respectively. These changes will be in effect from November 2020 to March 2021.
Speaking about its future, Sega Sammy says, "We expect to record approximately 10 billion yen as extraordinary losses (structural reform expenses) in fiscal year ending March 2021."