Sega Sammy Offers Retirement Option After Revenue Drop

Sega Sammy Holdings, the Japanese arcade and pachinko operator, needs to find 650 workers who would like early retirement. Upon reporting a 33.4 percent drop in revenue for the first half of 2020, the retirement opportunity was revealed

With special retirement allowances and re-employment assistance, anyone at Sega Sammy looking for an early way out has until December 25 to inform the company.

The company said: “In the view of the great impact on our business inflicted by the COVID-19 pandemic, we have established a restructuring committee to transform our structure to one adapted to our external environment.”

For the initiative there are the 9,051 full-time workers and contract staff at Sega Sammy, who qualify.   They will start their retirement on February 28, 2021, if they contact Sega Sammy to opt in between November 16 and December 25.

The same announcement announced that the directors of Sega Sammy would take a pay cut. Depending on their rank, directors and senior leaders can expect to see their monthly base salary dropping anywhere from 5 percent to 30 percent.

Sega Sammy will pay a handsome cost to reduce their potential losses, assuming 650 employees come forward, the release note said: “We expect to record approximately 10 billion yen ($96 million) as extraordinary losses (structural reform expenses) in fiscal year ending March 2021 in associated with the call for voluntary retirement.”

Between April and September, revenues fell to 110.23 billion yen ($1.06 billion), down 33.4 percent year over year. That resulted in a loss of 3.08 billion yen ($29.6 million), down from a profit of 14.6 billion for the same duration in 2019 ($140.7 million).

A healthy portion of that came from the sector of its integrated resort (IR). The operator holds a 45 percent interest in Paradise City, Incheon, a casino in South Korea that is only for foreigners. Sales there declined 58.9 percent to 2.28 billion yen (US$22.0 million) as during Covid-19, foreigners were unable to make it to the casino.