Sega of America announced today with a press release that the North American branch of the house of Sonic is moving out of its current offices in San Francisco to a new home in Southern California due to a move aimed to downsize the business.

SOA President and Chief Operating officer John Cheng accompanied the press release with a statement.

This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more. We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.

We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.

The announcement also mentions that a number of employees are being offered relocation packages, but there will be layoffs within the the company to streamline operations. The total number of employees affected will be finalized early this summer.

Sega also clarified that the publisher's release schedule will remain unaffected by the business' downsizing and move.

It's always sad to see people lose their job, but we can only hope that those affected will soon manage to find a new place within the industry to call home.