Sony, the Japanese technology giant, made a tough but necessary decision to lay off around 900 employees from its PlayStation division, resulting in a nearly 8 per cent reduction in its workforce. The impacted studios and groups include Insomniac Games, Naughty Dog, as well as other teams in the US, UK, and Europe.
According to a statement from Sony Interactive Entertainment, the US-based studios affected by the reduction in workforce are Insomniac Games, Naughty Dog, as well as its technology, creative, and support teams. In the UK and Europe, PlayStation Studios’ London Studio will close entirely, and there will be reductions in Guerrilla and Firesprite.
PlayStation chief Jim Ryan explained in an internal memo to employees that the decision to reduce the overall headcount globally by about 8 percent or about 900 people was necessary for the company’s growth and development. The changes were made after careful consideration and leadership discussions over several months.
Sony Group had previously lowered its revenue forecast due to a slowdown in sales of its PlayStation 5 gaming consoles in the quarter ended December 31, 2023. Despite falling short of the annual shipment target of 25 million units, the company reported a record high number of quarterly unit sales for PS5, with cumulative sales exceeding 50 million units.
Based on the results for this quarter, “PS5 unit sales for this fiscal year are expected to be around 21 million units.” The decision to lay off employees comes as part of a larger strategy to navigate the changing landscape of the gaming industry and position Sony for future success.
