It's now been confirmed that about 30 employees have been laid off by Sega, following a short-lived rumor from a company insider.
Sending out an email, a representative for the company divulges information:
Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success.
The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavors.
Good luck to all the now-former employees of Sega.