Sega Sells Company of Heroes Developer Relic Entertainment, Cuts Jobs

Sega has sold off Warhammer 40,000: Dawn of War and Company of Heroes developer Relic Entertainment, and jobs have also been slashed across other studios.

Published: March 28, 2024 8:51 AM /


The Sega logo next to an Imperial Knight from the Relic Entertainment game Warhammer 40,000: Dawn of War 3

Sega has sold off Warhammer 40,000: Dawn of War and Age of Empires IV developer Relic Entertainment, and a number of layoffs have also impacted other Sega studios.

According to, which cites a staff email sent by Sega Europe head Jurgen Post, 240 jobs are being cut across Total War studio Creative Assembly and Sonic Dream Team developer Sega Hardlight, as well as Sega Europe in general.

This is in addition to the sale of Relic Entertainment, which, according to a post on its official X (formerly Twitter) account, will revert to being independently-run. Relic's games, however, will continue to be supported, including Company of Heroes 3.

A battle in progress in the Relic Entertainment game Company of Heroes 3, developed under the auspices of Sega
Relic will continue to support its existing games, including Company of Heroes 3.

In the staff email sent by Post and seen by, Post apologizes for the "worry and understandable distress" caused by the layoffs and the sale of Relic.

Like many other studios, Post says Sega is "respond[ing] to the changing economic landscape", and that the studio is facing "challenges" in its development and publishing processes.

This isn't the first we've heard about a downturn in Sega's fortunes this year. In February, the company announced its profits had dropped sharply due to "weak" sales of certain games, and in January, Sega said it would lay off 61 American employees by March.

In September last year, meanwhile, Sega canceled the live-service shooter Hyenas, which was being worked on by Creative Assembly, one of the studios hit by layoffs today.

Characters in the Sega and Creative Assembly shooter Hyenas reaching for a Sonic toy
Sega canceled Creative Assembly's Hyenas last year.

These layoffs also take place against the backdrop of a wider wave within the industry, with layoffs occurring at major studios like Electronic Arts, Sony, and Microsoft, among many others.

Smaller studios have also been affected, with outfits like Deck NineDisco Elysium studio ZA/UM, and Wayfinder developer Airship Syndicate also hit by layoffs in recent months.

It's unlikely we've seen the last of this layoff wave. Stay tuned for more info on this and all other things industry-related.

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Joe has been writing for TechRaptor for five years, and in those five years has learned a lot about the gaming industry and its foibles. He’s originally an… More about Joseph