U.K., London – Sony Interactive Entertainment has announced a significant reduction in its workforce, affecting approximately 900 employees, or about 8% of its global PlayStation staff. The layoffs impact various PlayStation studios, including Insomniac, Naughty Dog, Guerrilla, Firesprite, and PlayStation’s London studio. As a result of these layoffs, Sony has also canceled several in-development games.
Outgoing Sony Interactive Entertainment boss, Jim Ryan, expressed the challenging nature of the decision in a blog post. He emphasized the need to adapt to the rapidly evolving gaming industry to ensure the company remains at the forefront of delivering top-notch gaming experiences. The layoffs are part of a strategic effort to prepare the business for the future and meet the expectations of both developers and gamers.
Employees across all Sony Interactive Entertainment regions, including the U.S. and the UK, will be affected by the layoffs. In the UK, where labor law mandates a consultation process for mass layoffs, Sony has proposed closing its PlayStation London Studio. Additionally, layoffs have been announced at Firesprite and various functions across SIE in the UK.
Hermen Hulst, the Head of PlayStation Studios, confirmed that the layoffs impact studios like Insomniac, Naughty Dog, Guerrilla, and Sony’s U.S.-based teams. Some games have been canceled as part of a reevaluation process aimed at ensuring the studios’ portfolios align with the company’s strategic goals. Hulst emphasized that stopping work on certain projects does not diminish the talent and passion of the team members involved.
The layoffs at Sony come amidst a challenging period for the gaming industry, with mass layoffs occurring in many companies. The move follows a similar trend in the industry, with other major players like Microsoft also announcing significant staff cuts. Sony’s decision to streamline its workforce is part of its effort to stay competitive and focused on delivering the best gaming experiences to its community.
In addition to the layoffs, Sony has faced challenges in meeting its sales targets for the PS5. Despite aggressive promotions, sales during the crucial holiday quarter fell below expectations, prompting the company to revise its forecast for the current financial year. Sony has also announced a delay in the release of major PlayStation franchise games, including sequels to popular titles like God of War and Spider-Man, until after April 2025.