Sega of America workers have alleged that the company, which produces series such as Sonic the Hedgehog, Persona, and Yakuza, is trying to lay them off as a result of their unionizing, according to a report by Kotaku. An Unfair Labor Practice charge filed by the Communications Workers of America states that Sega forced employees into a meeting where they were told that their positions would be “phased out.”

In the meeting, which occurred on November 6, members of the Allied Employees Guild Improving Sega (AEGIS-CWA) were allegedly told that their jobs would be offshored to Japan and Europe. The company reportedly delivered the news to employees directly in a mandatory meeting instead of going through the union, which could be found to violate rules against companies negotiating directly with members of unions.

According to a statement from AEGIS-CWA on Twitter, Sega management is threatening to outsource the majority of the jobs in the quality assurance and localization departments, which would amount to about 40% of the union. “We’re disappointed that Sega management has not yet ceased their union busting, even after we’ve won our union election back in July,” the statement reads. “QA and Loc workers are critical to Sega of America’s success. We remain united in our commitment to protect our coworkers and friends.”

AEGIS-CWA formed in July 2023 and is one of the biggest unions in the video game industry, incorporating employees from different departments.

In a statement to Kotaku, senior QA tester Elise Willacker said “It’s disheartening to see such actions from Sega, as it unmistakably demonstrates bad faith bargaining and a refusal to recognize the valuable contributions of a significant portion of our colleagues. We have filed an Unfair Labor Practice charge to call out Sega’s direct dealing with members, and its breaching of the status quo by telling bargaining unit members that our jobs would be ending shortly.”

The case will now go to the National Labor Board for review, though it may not be resolved in time to prevent mass layoffs, as their website states that cases typically take 7 to 14 weeks to resolve. “Sega will not be allowed to get away with this unlawful behavior. We call on the company to make all temporary employees permanent and return to the bargaining table in good faith. There is no other just alternative,” Willacker concluded.

This follows a major wave of layoffs in 2023, with developers Bethesda, Epic Games, and Bungie among the many who have cut back on employees. Sega has not yet commented on the situation.