You could hardly have missed it waves of repeated layoffs within the video game industry last year and even more during these first two months of 2024. The more than 1,900 job cuts at Microsoft have indeed caused a stir and we learned yesterday that Supermassive Games will completely fire a third of its staff… It is now the turn of Sony Interactive Entertainment to go through it and again it is not light. Thus, the president and CEO Jim Ryan, who will retire in March and is already not particularly appreciated by gamers, has just announced an 8% reduction in staff within the studios PlayStation around the world, i.e. around 900 people. But that’s not all…
Among the most impacted developers is London Studiofounded in 1993 and which will close its doors…We owe him, for example Blood & Truth for the PSVR first of the name and the latest news in October 2022, he announced working on an ambitious online cooperative fighting game, which according to leaks was called project Camden. London Studio is therefore visibly paying the price for the ambitions of SIE downward reviews in the field of games live service (GaaS). Mention is also made of Firespiritwhile The Verge indicates thatInsomniac Games, Naughty Dog And Guerrilla Games will be impacted.
Here is the statement from Jim Ryan and the email that was sent to employees. You will note that everything is not yet decided, but it is difficult to imagine SIE go back.
The PlayStation community means everything to us, so I thought it was important to update you on this difficult day in our business. We have made the extremely difficult decision to announce our intention to begin reduce our overall workforce globally by approximately 8%, or approximately 900 peoplesubject to local legislation and consultation processes. Employees around the world, including our studios, are affected.
These are incredibly talented people who have contributed to our success and we are very grateful for their contribution. However, the industry has changed enormously and we need to prepare for the future to prepare the business for what lies ahead. We must meet the expectations of developers and players and continue to propel future technologies in gaming. So we’ve taken a step back to make sure we’re ready to continue delivering the best gaming experiences to the community.
Below, I’ve shared a copy of the email I sent to the company this morning to provide more context on our thinking. We deeply appreciate the support and understanding of the PlayStation community, as these decisions are very difficult. Rest assured that our reorganization and streamlining plans are aimed at allowing us to continue to provide the best gaming experiences possible.
Subject: Important update regarding organizational restructuring
Team,
It is important to provide you with company updates as often as possible. Today I am writing to you with sad news. Through discussions over the past few months about the evolving economic landscape, changes in how we develop, distribute and launch products, and ensuring our organization is future-ready in this rapidly evolving industry, we concluded that difficult decisions have become inevitable. The management team and I have made the incredibly difficult decision to restructure operations, which unfortunately involves reducing our workforcewhich will impact the very talented people who have contributed to our success.
After careful consideration and numerous management discussions over several months, it became clear that changes needed to be made to continue to grow the business. We had to take a step back, look at our business holistically, and move forward with a focus on the long-term sustainability of the business and providing the best possible experiences for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver the experiences that players and creators expect from us.
I want to be as transparent as possible with you, our partners and our community about what this means:
- We plan to reduce our workforce by approximately 900 people, or approximately 8% of our current workforce.
- There will be an impact on employees in all SIE regions: Americas, EMEA, Japan and APAC.
- Several PlayStation Studios are affected.
I know receiving this news will be difficult and unsettling and you will wonder what this means for you. Timelines and procedures for how we approach this vary depending on your location due to local laws and regulations.
- For those of you in the United States, all affected employees will be notified today.
- In the United Kingdom, it is offered:
- London Studio will close its doors entirely ;
- That there will be discounts at the Firesprite studio ;
- And that there will be reductions in various functions within the SIE in the UK.
The proposed changes mean that we will enter a period of collective consultation before final decisions are made. All employees participating in the collective consultation will be informed today of the next steps.
- In Japan, we will implement an upcoming career support program. Details will be communicated separately.
- In other countries, we will begin conversations with those potentially at risk or affected by this proposed course of action.
For those who will be leaving SIE: You leave this company with our deepest respect and appreciation for all of your efforts during your tenure.
For those who remain at SIE: We will say goodbye to our cherished friends and colleagues during this process, and it will be painful. Your resilience, sensitivity and ability to adapt will be essential in the weeks and months to come.
This will not be easy and I am aware of the impact this will have on wellbeing. Affected employees will receive support, including severance packages. Although these are challenging times, this does not indicate a lack of strength in our company, our brand or our industry. Our goal is to remain agile and adaptable, and continue to focus on delivering the best gaming experiences possible, today and in the future.
Thank you for your understanding during this difficult time. Please be kind to yourselves and to each other.
Let’s wish the impacted employees good luck, hoping that they get back on their feet quickly.
| Alexandre SAMSON (Omega Law) Responsible Proofreader – Editor | ||
| Addicted to Assassin’s Creed and Destiny, big fan of RPGs and passionate about video game experiences in general. Reader of comics (DC) and various mangas (One Piece!). Chemist by training and Whovian at heart. | ||
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