Sony Interactive Entertainment (SIE) has recently announced layoffs of more than 900 employees, which is approximately 8% of its workforce. The company also announced the closure of PlayStation Studios London. Statements from President and CEO Jim Ryan and Head of PlayStation Studios Herman Hulst reveal that both US and European groups would be affected, including Insomniac Games, Naughty Dog, Guerrilla, and Firesprite, amongst others. This move comes as the PlayStation 5 enters its fourth year and the company reassesses its business needs in light of reducing its live service game plans and cutting back its sales forecast for the PS5.
In the same announcement, Hulst indicated that these layoffs and restructuring would impact specific projects which will not be continued. Despite acknowledging that the decision made was not a reflection of the employees’ talent or passion, these necessary actions were set to affect employees across all SIE regions, as mentioned by Jim Ryan. Support measures, including severance benefits, are arranged for the affected employees considering the inevitable impact of the layoffs on their wellbeing.
These layoffs are part of a more extensive trend within the video game industry, which has experienced significant job losses in recent years. Since the beginning of 2024, the industry has faced more than 7,000 layoffs surpassing the estimated 6,000 job losses in 2023. Cancelled projects and closures are part of the ongoing adjustments following the reshaping of their business strategies. Despite these challenges, the future course of SIE remains to be seen.
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