PlayStation is cutting around 900 staff worldwide, around 8% of its entire workforce

PlayStation is set to lay off around 900 employees worldwide.

The news was confirmed in a statement by current SIE president and CEO Jim Ryan – set to step down next month – who said the company had made the “extremely hard decision” to reduce its overall headcount by “about 8% or about 900 people”.

The layoffs will include the entire closure of the PlayStation London Studio.

“These are incredibly talented people who have been part of our success, and we are very grateful for their contributions,” Ryan’s statement reads.

“However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead.

“We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community.”

A separate statement from SIE also confirmed that Insomniac Games, Naughty Dog, Guerrilla and PlayStation’s technology, creative and support teams will also be “impacted by a reduction in workforce”.

Ryan also shared a company-wide email which was sent to staff today, explaining the plans in more detail. The email states that:

• There will be a headcount reduction of “about 900 people, or about 8% of our current workforce”
• The layoffs will impact employees across all Sony Interactive Entertainment (SIE) regions
• “Several PlayStation Studios” will be affected

US employees affected by the layoffs will be told today, while in the UK it has been proposed that:

• PlayStation London Studios “will close in its entirety”
• Firesprite Studio will see reductions
• There will be “reductions in various functions across SIE in the UK”

It was announced in 2022 that Sony’s London Studio was working on an “online co-op combat game” set in a fantasy London. The status of this game is now unclear.

“For those who will be leaving SIE,” Ryan’s email continues, “you are leaving this company with our deepest respect and appreciation for all your efforts during your tenure.

“For those who will be staying at SIE – we will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come.

“This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits. 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.”

The news makes PlayStation the latest in a long line of companies making layoffs in recent times, a trend that shows no sign of easing up.

Further reading

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Bungie’s layoffs reportedly amounted to around 100 staff

Staff who were due to get shares for staying at Bungie will also lose them, it's claimed

The company had already made a series of layoffs last year, including around 100 staff at Bungie, dozens of workers at Naughty Dog and 15-20% of staff at Dreams and LittleBigPlanet studio Media Molecule.

In January, Microsoft announced plans to cut 1900 staff across Xbox, Bethesda and Activision Blizzard King, with head of gaming Phil Spencer calling the move a “painful decision”.

Game developer Farhan Noor, who has been tracking job cuts dating back to the start of 2023 on videogameslayoffs.com, estimates that around 10,500 games industry employees were laid off last year.

Less than two months into 2024, Noor’s total for this year already sits at 6,100, a figure set to jump to 7,000 once the list is updated following today’s announcement.