The jobs of around 300 employees at Sega will be cut amid ongoing restructuring of the company.
Sega has released a note today advising that 300 of its staff members will be solicited for voluntary retirement. The company is going through restructuring and as it realigns its focus on smartphone and online PC games.
120 of those affected are employees of Sega of America. The company will move its headquarters from San Francisco to Southern California.
The downsizing will begin this month through early summer, when the total number of affected employees will be revealed.
"We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it," said Sega of America president John Cheng.
"This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more.
"We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years."
Upcoming game releases will not be affected, the note added.
As for Sega of Europe, the division will suffer "limited" redundancies.
"We are under consultation with a limited number of staff in the European publishing business and will be able to confirm decisions regarding any potential redundancies in the coming weeks," a spokesperson told Eurogamer.