Sony Is Laying Off Around 900 PlayStation Employees And Shutting At Least One Studio

We're not even three months into 2024.

In yet another massive blow in a particularly relentless first couple months of the year in the gaming industry, Sony Interactive Entertainment has announced a mass layoff within PlayStation, with around 900 staff (or about 8% of its total workforce) set to lose their jobs globally.

In a blog post, SIE president and CEO Jim Ryan says calls the event a “difficult day at our company” and cites the changing industry and an eye towards long-term sustainability as some of the reasons for this incredibly deflating news, which might naturally come across as surprising for a division making billions in revenue and hundreds of millions in operating profits.

Ryan also shared the email sent out to staff with the news, which reveals some more in-depth detail on what this round of layoffs will entail and who it might affect. The CEO says that these changes will impact all SIE regions, meaning The Americas, EMEA, Japan and APAC and will hit “several” PlayStation studios.

In the UK in particular, Firesprite will see a reduction in staff and London Studio, which has a 22-year history with PlayStation that includes the likes of EyeToy, SingStar and PlayStation VR Worlds, will be completely shut down. Bloomberg’s Jason Schrier writes that the layoffs will also affect some of PlayStation’s biggest and most successful studios like Naughty Dog, Insomniac and Guerrilla.

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The email says that affected employees will receive support including severance benefits, though the exact nature of this will seemingly be impacted by local employment laws where these staff are located.

Ryan’s email ends with the message, “While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry. Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.

“Thank you for your understanding during this difficult period. Please be kind to yourselves and to each other.”