The company will reduce its workforce by 8%, citing industry changes and the need to meet expectations from developers and gamers
Sony plans to cut approximately 900 jobs in its PlayStation division, representing around 8% of its global workforce. This move follows a trend in the technology and gaming sector of companies announcing layoffs. The restructuring is attributed to industry changes. Job reductions will be across the Americas, Japan, Europe, the Middle East, Africa, and the Asia Pacific region.
In a blog post on Tuesday, Jim Ryan, the CEO of Sony Interactive Entertainment, stated, “We must meet the expectations of developers and gamers and continue to advance future gaming technology. Therefore, we have taken a step back to ensure that we are prepared to continue delivering the best gaming experiences to the community.”
The layoffs on Tuesday come just one month after Microsoft announced it would be cutting nearly 2,000 workers following its acquisition of Activision Blizzard. Additionally, Riot Games, the developer of the popular multiplayer battle game League of Legends, announced in January that it would be laying off 11% of its staff.
Sony announced that the PlayStation Studio in London will be shut down entirely. Cuts will also be implemented at Firesprite studio. Additionally, reductions will occur across various functions within Sony Interactive Entertainment in the UK. The company stated that affected employees will receive severance benefits.
“Although these times present challenges, they do not reflect a lack of strength in our company, brand, or industry,” Ryan remarked. “Our objective is to maintain agility and adaptability, ensuring we continue to prioritize delivering the best gaming experiences, both now and in the future.”
Sony faced challenges in meeting demand for its PlayStation 5 console, which was released near the end of 2020, primarily due to recurring supply chain issues. Despite these challenges, the console has achieved high sales numbers.
