Sony to cut jobs from PlayStation gaming division; 8% workforce reduction
Sony is set to lay off approximately 900 employees, constituting around 8% of its workforce reduction, from its PlayStation gaming division.
The decision described as ‘extremely difficult but necessary’ will impact US-based studios and groups, including Naughty Dog, and Insomniac Games, as well as technology, creative, and support teams.
The reduction will also affect UK and European-based studios, with the proposed closure of PlayStation Studios’ London Studio and staff reductions in Guerrilla and Firesprite. Additional smaller reductions are expected in other teams across PlayStation Studios.
Jim Ryan, PlayStation chief, conveyed the decision in an internal memo, stating, “We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8 per cent or about 900 people, subject to local law and consultation processes.” He added that changes are necessary for the company’s continued growth and development.
The move comes after Sony Group revised its revenue forecast, citing a slowdown in sales of its PlayStation 5 gaming consoles in the quarter ending December 31, 2023. While PS5 hardware unit sales for the quarter reached 8.2 million units, exceeding the target for quarterly unit sales, it fell short of the annual shipment target of 25 million units. The cumulative sales of PS5 surpassed 50 million units.
Based on the quarterly results, Sony anticipates PS5 unit sales for the fiscal year to be around 21 million units.
