Square Enix will lay off some employees from its Western studios and shift 70% of game testing tasks to AI
The Japanese company announced such plans during a presentation dedicated to its medium-term business strategy.
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Layoffs
As explained by Square Enix, layoffs are part of a large-scale structural reform of its overseas division, initiated last year. Through this, the company aims to enhance "operational efficiency" and become more agile. Specifically, it plans to close certain foreign studios and concentrate game development processes in Japan.
Later, in a media comment, Square Enix clarified that the restructuring will affect teams in North America and Europe. The exact number of layoffs and which studios will be affected have not been disclosed. According to IGN, up to 137 Square Enix employees in the UK could be cut.
Through this restructuring, Square Enix expects to save over 3 billion yen ($19.5 million).
AI Optimization
Square Enix also revealed in the presentation that by the end of 2027, it plans to automate 70% of game testing and debugging tasks. These will be performed by artificial intelligence.
The realization of this idea will be supported by experts from the University of Tokyo, who will conduct AI technology research together with company employees.
Square Enix hopes that shifting the majority of tasks to AI will not only improve efficiency but also give it a competitive advantage in game development.