Square Enix has confirmed layoffs in its North American and European offices as part of a strategic shift towards AI-driven game development. The company announced plans to automate 70% of quality assurance and debugging tasks by 2027, in collaboration with the University of Tokyo's Matsuo Lab. This move is part of a broader restructuring to enhance its development framework and global marketing strategy. The company is also planning to relocate more development work back to Japan, following a period of global expansion and subsequent downsizing. Square Enix has been exploring the use of generative AI and has previously experimented with NFTs and AI-driven game demos, including for its upcoming 2024 title, Foamstars.