HOLR breaks down the story as the gaming giant undergoes a major Western restructuring amid industry-wide challenges and a shift toward automation.

Square Enix Confirms Major Layoffs

November 6, 2025: Square Enix has confirmed a sweeping round of layoffs impacting hundreds of employees across its UK and US offices. The announcement came as part of a broader plan to restructure its Western publishing operations and streamline its global business model. Reports indicate that over 100 positions in the UK have been affected, with United Statesadditional cuts across multiple departments in the United States.

These layoffs reportedly span marketing, publishing, business planning, IT, QA, sales, and other support functions. The company has emphasized that the move is intended to “modernize” its international operations and reduce redundancy across regions.

The Reason Behind the Restructure

President Takashi Kiryu outlined that the restructuring aims to make the organization “leaner and more agile,” particularly in response to the changing dynamics of the global gaming market. Square Enix is said to be reallocating resources to focus on higher-growth areas, including automation and generative AI.

The company has already begun exploring how artificial intelligence can be integrated into its quality assurance and debugging processes — a move that may further reduce the need for manual labor in the coming years. Financial analysts estimate that these changes could save the company roughly 3 billion yen, or about $19.6 million USD, annually.

Industry Impact and Employee Reaction

The layoffs come amid a turbulent period for the gaming industry, which has seen thousands of jobs cut across major studios over the past year. Rising production costs, slower game sales, and increased competition have forced even the most successful developers to reassess their strategies.

Employees at Square Enix’s London office were reportedly informed they were “at risk” during the consultation phase. Meanwhile, remaining staff have been told to expect more in-office work and fewer remote-work privileges as part of the company’s effort to enhance collaboration and efficiency.

What’s Next for Square Enix

For Square Enix, this restructuring represents more than just cost-cutting — it’s a signal of transformation. The company appears to be shifting its Western strategy to align with new market realities while embracing technology-driven development.

For employees, however, the cuts mark an uncertain future, with many long-term contributors losing their roles amid changing corporate priorities. Industry observers note that these layoffs could influence how other Japanese gaming giants manage their Western divisions in the years ahead.

HOLR has the latest on this developing story — Square Enix’s decision reflects both the growing influence of AI in the gaming sector and the intense pressure studios face to remain profitable in a fast-changing global market. As the dust settles, the company’s next steps will determine whether this restructuring strengthens its future or reshapes its legacy.