Sony today announced plans to layoff around 900 employees, resulting in an 8% reduction of its global workforce.
Insomniac Games, Naughty Dog, Guerilla, and Firesprite count among the impacted studios, but the layoffs also extend to the company's Technology, Creative, and Support teams.
Sony to Layoff 900 Employees
Furthermore, PlayStation Studios’ London Studio, responsible for developing VR games, is set to close.
"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," Jim Ryan, Sony Interactive Entertainment President & CEO wrote in a blog post. "Employees across the globe, including our studios, are impacted."
In a company-wide email shared in the blog post linked above, Ryan noted "discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry" among the reasons that led to the company's decision to restructure.
Hermen Hulst, Head of PlayStation Studios, noted in a separate blog post that delivering the quality titles the company's studios are known for "requires a re-evaluation of how we operate" while reaching new audiences across mobile and PC "requires a different approach and different resources."
"To take on these challenges, PlayStation Studios had to grow," Hulst continued. "We have brought brilliant and successful Studios into our family. We have invested in new technology and partnerships. We have recruited talent from across our industry and beyond.
"But growth itself is not an ambition. PlayStation Studios is committed to continually discovering ways to work together; collaborating and combining our efforts to ensure that we are able to craft games that push the boundaries of play and deliver what you expect from us."
As pointed out by The Verge's Tom Warren, the layoffs follow an announcement that Sony had missed a recent PS5 sales target.
The company also recently admitted to the console entering "the latter stage of its life cycle," while its major franchises won't see new releases in the year ahead.
Sony is only the latest company that turns to restructuring as a means of maintaining growth. In 2023, multiple studios were impacted by layoffs that cost thousands of workers their jobs.
This unfortunate trend seems very likely to continue into 2024, with Supermassive Games being one of several other companies that recently announced a reduction in workforce.
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