We know that times are very difficult for the world of video games at the moment, with numerous layoffs. But it seems to be getting worse, this time with PlayStation/Sony in turmoil.
In January 2024, it was a real and sad massacre in the video game world. With layoffs at Amazon, Twitch, Unity and even Discord. To make matters worse, some time later, literally 1,900 jobs were lost at Xbox. To deliver a final blow to the market, this time, it is PlayStation which is making the dismissal and officially speaking out on the subject to its entire community. We warn you, this is not particularly good for morale.
PlayStation mass layoffs
Here’s a milestone announcement for the PlayStation community: Jim Ryan, President and CEO of Sony Interactive Entertainment, shared some difficult news regarding the future of the company. SIE has made the painful decision to reduce its overall workforce by approximately 8%.which still represents almost 900 people. It’s just terrible.
This reduction affects employees around the world, including in the company’s studios, highlighting the scale of the disaster. This decision reflects significant changes within the industry. And the need (visibly) for Sony to prepare for the future. In particular to meet the expectations of developers. But also players.
In an email to the company, Jim Ryan shared more context on the restructuring. Indicating that these difficult decisions were motivated by changes in the economic landscape. But also the changes in the development, distribution and launch of products, and the need to make the organization ready for an uncertain future… In short, the usual words that plunge many people into a dramatic situation.
A very difficult time for employees
This workforce reduction will impact employees in all regions worldwide, including the Americas, EMEA (Europe, Middle East and Africa), Japan and APAC (Asia Pacific). Several PlayStation Studios will be affected by these changes, including:
- The complete closure of PlayStation Studios’ London Studio which worked on VR
- Discounts within the Firesprite studio (Horizon Call of the Mountain)
- Discounts in various functions across SIE in the UK.
According to journalist Jason Schreier, this goes even further since the layoffs will notably affect Insomniac (Marvel’s Spider-Man 2), Naughty Dog (The Last of Us) and Guerrilla (Horizon), three of PlayStation’s most successful subsidiaries. . So no one seems safe
Let us remember, however, that during the Insomniac hack that occurred last December, we learned that Sony had put pressure on Insomniac Games to reduce its costs by making layoffs. It was also revealed that this was linked to concern on Sony’s part about rising development costs… There is no smoke without fire.