Square Enix lays off hundreds of workers as it releases financial report

Dota 2 and Gaming Editor

Publish Date: November 7, 2025

Square Enix, the publisher and developer behind Final Fantasy and dozens of other titles has announced hundreds of layoffs and cuts across its business. The cuts come as the company reports a fall in sales but a rise in operating income.

The company also states it expects around “70%” of its quality control will be handled by AI by 2027.

Square Enix lays off staff in “nearly all areas” of Western business

With Square Enix’s newest financial report releasing on Nov. 6, many Square Enix staff in the US and Europe found themselves laid off by the Japanese video game giant. The company reported that Net Sales had fallen by around 15%, but operating income was up almost 30%.

The company pointed to a lack of releases this year in its HD games categories (SE’s internal categorization for non-mobile or amusements, i.e. all PC and console games), while their merchandise sales had risen. In 2025, the company had primarily focused on remasters and remakes, with Dragon Quest I & II’s HD remake, Return to Ivalice: Final Fantasy Tactics, and HD-2D titles, like Octopath Traveler 0.

Return to Ivalice: Final Fantasy Tactics. Image credit: Square Enix

In the wake of this, the report also revealed it was looking to shift the majority of its QC (quality control) to AI. These AI advancements would be responsible for elements like bug testing, quality assurance, translation, localization, and proof-reading.

Square Enix’s history with AI advocacy has been storied. Both current president Takashi Kiryu, and previous president Yosuke Matsuda, have aped the use of AI as essential for SE. Kiryu stated in 2024 that the company would be “aggressive in applying AI.” We can count yesterday’s announcement as beginning of the aggression.

Following the report, several hundred jobs across the company were put at risk or redundancy or laid off entirely. In the US, these layoffs were made immediately. In the UK, around 140 jobs are at risk, but under UK law, the company must undergo consultations to find if these jobs could be saved.

Square Enix, it seems, is battling its constant bugbear of struggling to capitalize on the IPs that made it famous. Any long-time follower of SE’s financials will be aware that the company has been disappointed in the sales of its singleplayer titles, while it is satisfied by the high returns from its MMO category.

Unfortunately for SE, a decision to leave quality control in the hands of AI could backfire, as players could immediately point to it as a source of bugs, mistakes, and lack of sales in the future.

Featured Image Credit: Square Enix