Sony plans to lay off 900 employees from its PlayStation unit
Sony’s PlayStation division announced significant layoffs affecting approximately 900 employees, constituting 8% of the division’s global workforce. Additionally, the company revealed the closure of its London Studio in the U.K.
PlayStation chief Jim Ryan emphasized the need for changes to drive business growth and company development after extensive leadership discussions. He underscored the focus on long-term sustainability and delivering exceptional experiences for the community.
In a separate statement, head of PlayStation Studios Hermen Hulst noted that studios including Insomniac Games, Naughty Dog, Guerrilla, and Firesprite would be affected by the layoffs. The cuts will impact employees across regions such as the Americas, Japan, EMEA, and APAC, with some ongoing projects halted at various stages of development.
The layoffs follow Sony’s recent downward revision of its PlayStation 5 sales forecast, citing decreasing demand. The company now anticipates selling 21 million units in its fiscal year, down from the previous forecast of 25 million consoles, resulting in a decline in Sony’s share value.
Indeed, recent weeks have seen a flurry of layoffs across various industries, including the gaming sector. Microsoft’s significant layoffs affecting 1,900 employees at Activision Blizzard and Xbox, along with Unity’s decision to cut 25% of its workforce, reflect the challenges faced by companies in maintaining their operations and adapting to market dynamics.
Furthermore, a wide range of companies outside the gaming industry, such as Google, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo, have also implemented sizable layoffs in the past month. These actions underscore the broader economic uncertainties and strategic shifts occurring in response to evolving market conditions, technological advancements, and regulatory changes.
The wave of layoffs across various sectors highlights the need for companies to reassess their strategies, streamline operations, and prioritize long-term sustainability amid ongoing challenges and transformations in the global business landscape.
