Sony To Layoff 900 PlayStation Employees
Sony stated on Tuesday that it will cut approximately 900 jobs at its PlayStation unit and close a studio in London. This move comes as the video gaming industry works to rebound from a post-pandemic slowdown.
The layoffs would affect around 8 per cent of the division's personnel in locations ranging from the Americas to Asia, according to Reuters. Sony has lowered its annual sales projection for the PlayStation 5 system.
Sony's gaming chief, Jim Ryan, claimed, "We have come to the conclusion that difficult decisions are now unavoidable," citing changes in the video game industry's development, distribution, and launch processes.
Ryan is slated to retire in March. Sony's move to reduce its PlayStation division aligns it with other industry titans such as Microsoft and Tencent-owned Riot Games, all of which have experienced massive layoffs in recent months.
These moves mirror the broader issues that the gaming industry faces as it slowly recovers from the pandemic downturn.
These layoffs will affect Sony's other studios, including well-known names such as Insomniac Games, based in the United States and known for titles like "Marvel's Spider-Man 2," and Naughty Dog, the studio behind "The Last of Us."
Earlier this month, Sony said that it expects a gradual reduction in PlayStation 5 unit sales beginning with the following fiscal year. Furthermore, the business stated that it does not plan to release any significant franchise games in the coming fiscal year.
Despite these forecasts, the PlayStation 5 has sold over 50 million units since its late 2020 release. Sony's gadget production struggled in the early years due to pandemic-induced supply constraints.
