Sony Lays Off 900 Employees in Gaming Division

Alex Weprin
·2 min read
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Sony is the latest tech and gaming giant to undergo a significant round of layoffs.

The company’s Sony Interactive Entertainment unit is cutting 8 percent of its workforce, or about 900 people, its CEO Jim Ryan told employees Tuesday morning.

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The division includes Sony’s PlayStation devices, as well as multiple game development studios.

“Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable,” Ryan wrote. “The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.”

Ryan wrote that employees will be impacted across all of SIE’s regions, including multiple studios. Sony is proposing to close down its PlayStation Studios’ London Studio entirely.

“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company,” Ryan wrote. “We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community.”

Layoffs have hammered the gaming industry over the past few months, as companies adapt to the current economic environment. Sony’s biggest competitor in the space, Microsoft, cut 1,900 employees last month after completing its acquisition of Activision Blizzard.

Elsewhere, Fortnite studio Epic Games cut 830 jobs late last year, while Riot Games, the producer of League of Legends, cut 530 jobs last month.

Both gaming and tech have been hammered by cuts, with Amazon slashing hundreds of jobs (including at its video game-focused streaming service Twitch), and the video platform YouTube restructuring.

You can read Ryan’s email to Sony staff below.

Subject: Important Update Regarding Organizational Restructuring

Team,

It is important to provide you with updates about the business as often as possible. Today, I am writing with sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable. The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.  

After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.

I want to be as transparent as possible with you, our partners, and our community about what this means:

  • We envision reducing our headcount by about 900 people, or about 8% of our current workforce

  • There will be impact for employees across all SIE regions – Americas, EMEA, Japan, and APAC

  • Several PlayStation Studios are affected

I know that receiving this news will be hard and unsettling and you are wondering what this means for you. Timelines and procedures for how we approach this will vary based on your location due to local laws and regulations.

  • For those of you in the US, all impacted employees will be notified today.  

  • In the UK, it is proposed:  

    • That PlayStation Studios’ London Studio will close in its entirety;

    • That there will be reductions in Firesprite studio;  

    • And that there will be reductions in various functions across SIE in the UK.

The proposed changes mean that we will enter a period of collective consultation before any final decisions are taken. All employees who are part of the collective consultation will be made aware of the next steps today.  

  • In Japan, we will implement a next career support program. Details will be communicated separately.  

  • In other countries, we will begin conversations with those who are potentially at risk or impacted as a result of this proposed course of action.  

For those who will be leaving SIE: 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. 

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

Jim 

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