In a strategic yet challenging move, Sony Corporation is set to lay off approximately 900 employees, constituting around 8% of its workforce, from its highly acclaimed PlayStation gaming division. This decision, conveyed by PlayStation chief Jim Ryan in an internal memo, is described as “extremely difficult but necessary” for the company’s continued growth and development.
The layoffs will predominantly affect US-based studios and groups, including prominent names like Naughty Dog and Insomniac Games. The impact will extend to technology, creative, and support teams within the PlayStation gaming division. In addition to the US, UK and European-based studios will also see changes, with the proposed closure of PlayStation Studios’ London Studio and staff reductions in Guerrilla and Firesprite. Smaller reductions are expected in other teams across PlayStation Studios.
Jim Ryan acknowledged the difficulty of the decision, stating, “We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8 per cent or about 900 people, subject to local law and consultation processes.”
This strategic move follows Sony Group’s recent revision of its revenue forecast, citing a slowdown in sales of its PlayStation 5 gaming consoles in the quarter ending December 31, 2023. While the PS5 hardware unit sales for the quarter exceeded the target at 8.2 million units, it fell short of the annual shipment target of 25 million units. Despite the setback, cumulative sales of PS5 surpassed 50 million units.
Based on the quarterly results, Sony anticipates PS5 unit sales for the fiscal year to be around 21 million units.
