Sony Interactive Entertainment (SIE), known for the PlayStation gaming systems, plans to let go about 900 of its employees, which is an 8% reduction of its overall headcount.
In an email sent out to the company, Sony President and CEO Jim Ryan stated that the layoffs will impact several regions, including the Americas; Europe, the Middle East, and Africa (EMEA); Japan; and the Asia Pacific region. Timelines for the layoffs will be informed by location, based on local laws and regulations.
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.
Employees in the U.S. who will be impacted will be notified today, Feb. 27. U.S.-based studios impacted include Insomniac Games and Naughty Dog. In the UK, Sony is proposing the closing of PlayStation Studios’ London studio and reductions at Firesprite studio.
The PlayStation 5 was released in November 2020, when video game sales were surging in response to the global pandemic. According to Circana (formerly the NPD Group), consumers spent $4.6 billion across video game hardware, content, and accessories in February 2021, just three months after the console’s launch. Competitor Microsoft launched its own Xbox Series consoles the same month.
The layoffs follow Sony’s decision to step back and streamline resources. All proposed changes will enter into a period of collective consultation before being finalized. The company hopes to support those affected with initiatives like a next-career support program in Japan as well as severance benefits.
