Summary
Sega has announced that three companies under its umbrella are facing layoffs, and it has also sold Relic Entertainment, the well-known developer behind multiple successful franchises. Since its founding in 1997,Relic Entertainment has released several popular games, including fourWarhammer 40,000titles,Company of Heroesand its two sequels, the first two games in theHomeworldseries, andAge of Empires 4.The company has earned a reputation in the industry primarily as a skillful developer of real-time strategy games but has dabbled in other genres as well.
In 2013, during the process of filing for bankruptcy, the now-defunct THQ soldRelic Entertainmentto Sega for $26.6 million. In the process, Relic’sHomeworldfranchise was sold to Gearbox Software and Embracer-owned THQ Nordic acquired the rights toImpossible Creatures,one of the first games released by the developer.
The first rumors that there might be trouble brewing within the studio came in May 2023, whenRelic announced that it would be laying off 121 employeesin a restructuring. This came at a time when industry-wide issues were beginning to hit multiple game studios, resulting in sweeping layoffs that are still occurring with concerning regularity to this day. Now, Relic has announced that it has been sold by Sega to an unnamed external investor, and the developer will now be operating as an independent studio.
It’s unknown how this may impact Relic in the long run or whether it will be a positive change for the company. However, in its announcement, the studio reassured fans that it would continue to support its titles, includingCompany of Heroes 3,which launched in February 2023 and is considered by many to be one of thebest strategy gamescurrently available. It’s also currently unclear if Relic has begun working on another project after the release ofCompany of Heroes 3.
Sega Announces Layoffs at Other Studios
Simultaneously to the announcement of the sale of Relic, Sega also confirmed that some of its other subsidiaries are facing layoffs. Namely, 240 jobs will be cut at Sega HARDLight, Sega Europe, and Creative Assembly, the developer of the long-running and extremely successfulTotal Warseries of games. Whether the cuts at Creative Assembly are related todiscontent among the fan base with its most recentTotal Wargamesis unknown, but Sega had already canceled the developer’s multiplayer extraction shooterHyenasin September 2023.
At the time, in 2023, Sega had cited a tough financial year as the reason behind the layoffs and game cancellations. Similarly, head of Sega Europe Jurgen Post stated in an email on June 14, 2025, that the sale of Relic, the restructuring of other studios, and the resulting job cuts is in response to the “changing economic landscape and challenges we’re facing in the way we develop our products and bring them to market.”
Company of Heroes 3
WHERE TO PLAY
Relic’s Company of Heroes 3 is a real-time strategy game set during World War 2, with the title focusing specifically on the Allied Forces' North African and Italian campaigns. A sequel to 2013’s Company of Heroes 2, the 2023 game brings a couple of new modes and ideas to the beloved franchise. Initially launching on PC, Company of Heroes 3 is also expected to drop on the PS5 and Xbox Series X/S at a later date.The legendary strategy franchise is back! Company of Heroes 3 is the ultimate package of action, tactics and strategy. Take charge in the heat of real-time battle, then command as a General guiding the overall campaign where every decision matters.Overwhelm your opponents with four unique factions and all-new international Battlegroups. Command ground, air and naval forces and build supply lines to crush enemy advances on the new Dynamic Campaign Map - no two playthroughs are ever alike! Play at your own pace across campaign and skirmish modes before diving into blistering multiplayer action. Discover the untold stories of a stunning Mediterranean theatre featuring next-generation destructible environments, all powered by Relic’s proprietary Essence Engine.
