Final Fantasy publisher Square Enix announces mass layoffs after expanding use of generative AI

Square Enix is the latest major game publisher to consolidate its workforce. The maker of Final Fantasy games is cutting hundreds of jobs in the UK and the U.S. The news comes following the company’s pledge to further embrace generative AI.

Video Games Chronicle reports that Square Enix president Takashi Kiryu discussed the firings on an international video call. While specific numbers aren’t available, as many as 140 employees in the company’s London office could lose their positions. With locations across Europe and the United States, affected roles include marketing and IT. The indie game component of Square Enix, the Collective, could be particularly hard hit.

VGC also mentions Q&A as an area that the Japanese publisher is targeting with the layoffs. That may raise red flags among gamers following another recent announcement. Its latest financial progress report detailed plans to make that aspect of game development more efficient.

How AI could replace Square Enix workers

Square Enix has teamed up with the Matsuo-Iwasawa Laboratory at the University of Tokyo to enhance its reliance on generative AI. Q&A is a crucial part of the development process, evaluating how user-friendly a game is. AI would also aid in the laborious bug-testing process. By the end of 2027, the company hopes to automate 70% of these tasks.

The concern for workers is that, to boost profits, AI will gradually replace humans. Xbox Gaming has heavily invested in the technology, with projects like Muse. The company claims that the goal is to assist creators rather than supersede them. Still, staff at the Microsoft-owned Candy Crush Saga developer, King, already claimed co-workers were terminated because of these tools.

Square Enix previously conducted layoffs in Europe and North America in 2024. The moves weren’t enough to turn the fortunes of the publisher around. In the recent financial report, the results were a mixed bag. Operating income increased by 6% compared to the same period a year prior, but net sales declined by 23.7%.