Sony cuts 900 jobs in gaming, shuts down London division
SONY'S PlayStation division has announced plans to make significant cuts, impacting around 900 employees.
The company has decided to cut down approximately 8 per cent of its global workforce as part of restructuring operations.
The job cuts will reportedly impact a range of its PlayStation studios, including Insomniac Games, Naughty Dog, Guerrilla Games and Firesprite.
The reduction in headcount will affect studios worldwide, including the closure of Sony's London Studio in the UK and layoffs at Firesprite Studio, reports The Verge.
PlayStation chief Jim Ryan says the recent job cuts are part of a broader trend affecting the gaming and tech industries in 2024, and the decision was not taken lightly.
"We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8 per cent or about 900 people, subject to local law and consultation processes. Employees across the globe, including our studios, are impacted," wrote PlayStation chief Jim Ryan in an internal memo sent to staffers.
In his memo, Jim Ryan addressed the workforce reduction plan, stating that the company intends to reduce its workforce by approximately 900 people, equating to roughly 8 per cent of the current employee count.
This reduction will have a global impact, affecting employees across all regions of Sony Interactive Entertainment (SIE), including the Americas, EMEA, Japan, and APAC.
"After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company," says Ryan.
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Ryan noted that several PlayStation Studios would be affected by the restructuring. Specifically, in the UK, significant changes are being proposed as part of restructuring. PlayStation Studios' London Studio area is also slated for closure, with further plans for employee reductions in Firesprite Studio, and various functions across SIE in the UK. However, prior to final decisions, the company will take a period of collective consultation.
Meanwhile, Ryan assures that support programs will be implemented to assist affected employees. In Japan, a next career support program will be introduced, with details to follow separately. "We will begin conversations with those who are potentially at risk or impacted as a result of this proposed course of action," he notes.
Acknowledging the impacting employees, Ryan expresses respect and appreciation for their contributions during their tenure with SIE. For those remaining, Ryan states that the company recognizes the emotional toll of the restructuring and encourages resilience, sensitivity, and adaptiveness. Hence, the company will offer severance benefits and support to affected employees.
Ryan urged employees to support one another and themselves during this difficult period, emphasising the importance of kindness and understanding. "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," he notes.
Meanwhile, in a separate communication, Hermen Hulst, the head of PlayStation Studios, highlights that the layoffs will affect studios in the United States, including Insomniac Games and Naughty Dog, as well as Sony’s Guerrilla studio based in the Netherlands. This impact spans across employees in the Americas, Japan, EMEA, and APAC regions.
