SUMMARY
- PlayStation becomes the latest victim of layoffs, where 900 employees are being laid off.
- The layoffs not only affect the main studio but several subsidiary studios as well, including the London Office.
The gaming world is advancing and succeeded at a massive rate. The industry is producing some blockbuster hits, and clocking in enormous amounts in revenues. However, it is also causing massive layoffs affecting
This just adds to the list of the mass layoffs happening in the gaming industry. In January 2024, Microsoft laid off 1,900 workers, mainly affecting the newly acquired Activision Blizzard-owned studios.
PlayStation lays off 900 employees
PlayStation recently announced that it is letting go of a total of 900 employees from the company. Sony CEO Jim Ryan, in a blog post announcing the news said, “The PlayStation community means everything to us, so I felt it was important to update you on a difficult day at our company. 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.”
PlayStation is laying off 900 employees
byu/Fidler_2K inGamingLeaksAndRumours
Explaining the reasons for the layoffs being implemented Jim says that the industry “has changed immensely”. The CEO also issued an internal email to workers, Ryan also says that the layoffs are being made in order to “continue to grow the business and develop the company”.
The email read, “For those who will be leaving [Sony Interactive Entertainment]: You are leaving this company with our deepest respect and appreciation for all your efforts during your tenure.”
It added, “This will not be easy, and I am aware of the impact it will have on wellbeing,” Ryan continues. “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.”
Notably, the effects of 900 layoffs are not expected to be felt immediately. This is because Sony will have to undergo a consultation process in regions such as the UK. It is reported that Sony is currently looking at accounts for about eight percent of its worldwide workforce. It is reported that Sony is currently looking at accounts for about eight percent of its worldwide workforce.
Which other Sony Studios are affected by layoffs?
Consequently, Sony’s subsidy is set to shut down its London Studio entirely. Apart from the closure of the PlayStation London office, there are several other consequences of the layoff that could follow.
The company could also cancel its announced new IP. Besides, there are layoffs expected in other Sony-owned studios situated in the UK as well. This could affect Firesprite studio, which Sony reportedly acquired in 2021 as well.
The fact that Insomniac, a studio who’s last game sold 10 million copies in just 4 months, wasn’t safe from layoffs is disheartening. I hope everyone who was affected by the layoffs across Playstation are doing well pic.twitter.com/2sR1L9hGeQ
— That REDACTED Guy (@REDACTEDSpider) February 27, 2024
Besides, Firesprite included developers from another studio that Sony shut down in 2012 and moved to Firesprite. That being said, Firesprite will still survive and stay open, unlike London Studio. The London Studio is among the workplaces included in today’s layoffs which will be shut down completely. It remains to be seen how many staff will be affected.
Shortly after announcing the layoffs of 900 employees, Sony also revealed that it was not just the UK market, but the US-based studios that would be affected too. Sony’s other subsidiaries including Insomniac Games and Naughty Dog are also at a stage of being potentially affected. Notably, the two studios have recently revealed super-hit titles including Marvel’s Spider-Man 2 and The Last of Us Part 2 Remastered respectively.
