In a move that is sure to send ripples through the gaming industry, Sony Interactive Entertainment announced on Tuesday that it will be laying off approximately 900 employees, representing 8% of its global PlayStation workforce. This decision comes as the company navigates an evolving industry landscape.
“After careful consideration and extensive leadership discussions over the past few months, it became clear that adjustments were necessary to ensure continued growth and development for the company,” stated Jim Ryan, President and CEO of the PlayStation unit, in a publicly released email to employees.
Ryan acknowledged that the layoffs will affect employees across all regions, with the complete closure of PlayStation’s London studio and potential impacts on several other studios.
This news follows Sony’s recent revision of its sales forecast for the PlayStation 5 console on February 14th. Citing lower-than-expected demand, the company adjusted its target from 25 million units to 21 million for the fiscal year ending March 2024. This announcement sent the company’s shares into a significant decline.
While analysts had anticipated a potential release of a refreshed PlayStation 5 model this year to reignite consumer interest, Tuesday’s announcement marks another chapter in the ongoing wave of layoffs within the tech sector. Similar workforce reductions have recently been announced by Microsoft’s gaming division following its acquisition of Activision Blizzard, as well as by companies like Cisco and DocuSign as part of their respective restructuring plans.
