Mass layoffs hit Square Enix hours after company says AI will handle 70% of QA and debugging

“We extend our heartfelt gratitude to the talented team members who will be departing the company for their significant contributions to Square Enix. During this period of transition, we remain committed to treating each individual with the utmost respect and providing extensive support throughout this process.”

IGN reports internal sources saying up to 137 roles in the UK could be at risk, with an unspecified number of positions affected in the US. Any planned redundancies in the UK must follow local consultation procedures.

VGC, citing an internal video briefing, states that “nearly all areas” of the company’s operations will be impacted. Several members of Square Enix’s community management team have publicly confirmed they were laid off.

This round of cuts appears tied to Square Enix’s broader plan to concentrate development in Japan. In an investor presentation released on November 6, 2025, the company outlined an “Overseas Structural Reform,” which includes closing some overseas development studios and centralizing development functions in Japan.

“The management of IPs previously overseen by overseas development studios will be globally integrated,” the company adds.

The presentation also sets a target to have “70% of QA and debugging tasks in game development” handled by AI by the end of 2027.

Square Enix has publicly signaled a strong interest in AI — CEO Takashi Kiryu said last year the company plans to be “aggressive” in adopting the technology — so combining AI initiatives with workforce reductions has intensified scrutiny as the wider games industry confronts both topics.

Studio Ghibli, Square Enix, Bandai Namco and other Japanese companies have urged OpenAI to refrain from using their intellectual property without authorization: “There is no system allowing one to avoid liability.”

 

Source: gamesradar.com