Sony has announced that around 900 PlayStation staff will be laid off worldwide, equalling roughly 8% of its workforce. As part of the layoffs, PlayStation’s London Studio will be closing its doors after more than 20 years.
The news was announced in a statement by outgoing SIE boss Jim Ryan, who described the layoffs as an “extremely hard decision”
“We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8% or about 900 people, subject to local law and consultation processes,” Ryan said. “Employees across the globe, including our studios, are impacted.”
“These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead.”
Ryan continued: “We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community.”
Ryan has also shared a company-wide email that was sent to staff today, which outlines the company’s plans in further detail. In it, Ryan claims that the decision to lay off staff came after “several months” of leadership discussions and a focus on long-term sustainability. Ryan’s email states the following:
- A reduction in headcount totalling “about 900 people, or 8% of our current workforce”
- Cutbacks will affect all SIE regions (Americas, EMEA, Japan, and APAC)
- “Several” PlayStation Studios will be affected as a result
Employees in the US will be informed today if they have been impacted, while in the UK, the following has been proposed:
- PlayStation’s London Studio will “close in its entirety”
- “Reductions” will be made at Liverpool-based Firesprite Studio
- There will be “reductions in various functions across SIE in the UK”
Back in 2022, it was announced that London Studio was working on an “online co-op combat game” set in a fantasy London. The title was being developed specifically for the PlayStation 5 running on the studio’s Soho engine. While no update was given on the game’s development, its future is now unclear.
As for employees in Japan, SIE will be implementing a “next career support program” designed to help those affected find a new job.
Ryan’s email continued: “For those who will be leaving SIE: You are leaving this company with our deepest respect and appreciation for all your efforts during your tenure.
“For those who will be staying at SIE: We will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come.
“This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits. While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry.
“Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.”
This latest round of layoffs continues an unfortunate series of cutbacks affecting Sony-owned studios. In October 2023 alone, at least 25 staff at Naughty Dog, 15-20% of Media Molecule, and around 100 Bungie employees were let go.
In January, Microsoft announced that it was cutting 1900 staff across Xbox, Bethesda and newly acquired Activision Blizzard King, in a move that Microsoft Gaming CEO Phil Spencer described as a “painful decision”.