Sony has announced significant layoffs affecting approximately 900 staff, representing approximately 8% of PlayStation employees worldwide.
The layoffs will affect a number of PlayStation studios, including Insomniac, Naughty Dog, Guerrilla, Firesprite, and most importantly, PlayStation’s London studio.
Outgoing Sony Interactive Entertainment boss Jim Ryan issued an update on what he called a “difficult day at the company” in a blog post.
“Subject to local laws and consultation processes, we have made the very difficult decision to announce plans to begin reducing our workforce by approximately 8%, or approximately 900 people, worldwide. Our Studio Employees around the world are affected, including:
“They are incredibly talented people who have contributed to our success and we are extremely grateful for their contributions. However, the industry has changed significantly and we We need to be ready to build our business for the future. We need to meet the expectations of developers and gamers and continue to drive future technology in gaming, so we can provide our community with the best gaming experience. We took a step back to see if we were ready to continue delivering.”
Ryan released an email sent to staff this morning, reassuring PlayStation gamers that “our reorganization and streamlining plans are designed to continue to provide the best gaming experience possible.”
“A tough decision has become inevitable,” Ryan said in an email to staff, adding that the layoffs will affect employees across all SIE regions, with some PlayStation Studios affected.
U.S. employees will be told today whether they still have jobs. In the UK, where labor laws require a consultation process for mass layoffs, Sony has proposed permanently closing its PlayStation London Studio, which previously produced VR games. Although Ryan did not confirm this via email, it seems likely that London Studios’ co-op PlayStation 5 game set in modern fantasy London will be cancelled.
Ryan also announced layoffs at Firesprite, a British studio developing a new narrative game. The status of that game is unknown. Elsewhere, Mr Ryan announced a range of cuts to functions across UK SIE.
“The proposed changes mean we will enter a period of collective consultation before a final decision is made,” Mr Ryan said. “All employees participating in the collective consultation will be informed of the next steps today.
“To those retiring from SIE: It is with deep respect and gratitude that I am leaving SIE for all of your hard work during my tenure.
“To those who remain at SIE: During this process we will be saying goodbye to dear friends and colleagues, which will be difficult. Your resilience, sensitivity and adaptability will be greatly appreciated. , will be extremely important over the coming weeks and months.
“This is not easy and we know the impact it has on wellbeing. Affected employees will receive support, including severance pay. This is in no way an indication of any lack of strength in our company, our brand, or our industry. Our goal is to remain agile and adaptable, and to deliver the best gaming experience possible now and in the future. This is something we will continue to focus on.
“Thank you for your understanding during this difficult time. Please be kind to yourself and each other.”
In a separate blog post, PlayStation Studios head Hermen Hulst said that Spider-Man developer Insomniac, The Last of Us developer Naughty Dog, and US-based Sony technology, creative, He acknowledged that each support team will be affected by the layoffs. Horizon developer Guerrilla is also affected.
Hulst acknowledged that some games were canceled as part of a “reassessment of how we operate,” but declined to name specifics. “We looked at the studio and our portfolio, evaluated projects in various stages of development, and determined that some of those projects could not move forward,” Hulst said.
“We would like to clarify that our decision to cease work on these projects is not a reflection of the talent or passion of our team members. Our philosophy has always been to allow creative experimentation. . Sometimes a great idea doesn’t become a great game. Projects begin with the best of intentions before changes in the market or industry change plans.”
According to leaked documents, Sony was seeking to cut staff across its studios. Dreams developer Media Molecule has suffered a series of layoffs, Destiny developer Bungie has seen significant layoffs, and The Last of Us developer Naughty Dog has seen layoffs. Ta.
Sony’s layoffs come during one of the most difficult times the gaming industry has ever faced, with mass layoffs set to continue throughout 2023 and into 2024. Last month, Microsoft cut an eye-watering 1,900 staff from its video game workforce following its $69 billion acquisition. Activision Blizzard, owner of Call of Duty. IGN recently spoke to the developer about these layoffs and tried to explain why.
Earlier this month, Sony admitted that PS5 sales during the important holiday quarter fell short of expectations. Sony had set an ambitious goal of selling 25 million PS5 units during the current fiscal year, which ends on March 31, 2024, but despite aggressive promotions, sales in the fourth quarter As unit sales were lower than expected, the forecast was revised downward to 21 million units. Sony sold 8.2 million PS5 units in the third quarter ending December 31, 2023, up from 7.1 million units sold in the same period last year, but it wasn’t enough to meet Sony’s lofty goals.
Elsewhere, Sony has said it will not release any existing major PlayStation series games before April 2025 and will rule out big sequels in the God of War and Spider-Man series for the time being. Ta.
Wesley is IGN’s UK News Editor. Find me on Twitter @wyp100. Wesley can be contacted at [email protected] or confidentially at [email protected].