Sony Interactive Entertainment, the company behind PlayStation, announced it will be cutting 900 jobs, according to President and CEO Jim Ryan on Tuesday.
This move will result in an 8% reduction in the company’s workforce, as stated in a press release.
Ryan communicated to employees that the company faced a tough decision to reorganize its operations, which unfortunately involved downsizing the workforce.
This includes some highly skilled individuals who have played a significant role in the company’s achievements.
He attributed the need for layoffs to the changing economic conditions, alterations in product development, distribution, and launch processes, and the necessity for the company to adapt to the fast-paced evolution of the industry. The timeline for these layoffs will differ based on location.
Furthermore, PlayStation’s London Studio will be closing down as part of these changes. Ryan expressed his gratitude towards the departing staff for their contributions and acknowledged the significant transformations the industry has undergone. He emphasized the importance of preparing the company for future challenges.
This news from PlayStation follows similar announcements from other gaming companies, including Supermassive Games, known for “Until Dawn” and “The Quarry,” which also disclosed plans for workforce reductions.
Last month, Microsoft Gaming, a key competitor of PlayStation, revealed it would be cutting about 1,900 jobs.
The gaming industry has faced a challenging period over the last 14 months, with thousands of job losses reported last year alone.
Estimates suggest that around 6,500 gaming industry workers were laid off, with some unofficial trackers indicating higher numbers.
These layoffs are partly attributed to the industry’s adjustment to the post-pandemic environment, which saw a boom in gaming as people sought entertainment during lockdowns.
A Sony Interactive Entertainment spokesperson stated that the company’s objective remains to fulfill the expectations of players and partners and to provide top-tier gaming experiences. The spokesperson further mentioned that through these actions, Sony aims to build a more robust and adaptable organization.
