Sega Drops 30 Percent of Workforce

Sega of America on Friday confirmed that it had eliminated 30 percent of its entire US workforce. Although exact numbers have not been released, rumors said that a majority of employees in the marketing, PR, and development departments were practically wiped out in the massive restructuring. Repeated calls to Sega of America's corporate marketing and PR departments went unanswered.

In the statement released to the press this afternoon, Sega of America's chief operating officer, Bernard Stolar, said, "To be fiscally responsible and competitive tomorrow, we have to make some difficult decisions today that will put us on the right path for long-term success."

Will this restructuring aid the ailing third wheel in the console wars? As K-Mart, Target, and other national chains are clearing their stock of Sega Saturn titles, many wonder if Sega can keep its head above water until it releases its coveted next-generation console code-named Katana (formally code-named Dural).