Sony has officially declared layoffs affecting approximately 8% of its gaming workforce, translating to around 900 employees, as revealed by outgoing president Jim Ryan. The decision is part of Sony’s strategy to grow the business and ensure long-term sustainability. The gaming giant’s global studios will experience redundancies, with a notable impact on PlayStation Studios London, which is set to close entirely. Additionally, Horizon: Call of the Mountain developer, Firesprite, is expected to undergo reductions.
Ryan emphasized that the difficult decision was made to secure the company’s development and future success. In a separate blog post, Herman Hulst, the head of PlayStation Studios, confirmed layoffs at major studios, including Insomniac (Marvel’s Spider-Man developer), Naughty Dog (The Last of Us developer), and Guerrilla Games (Horizon Forbidden West studio).
These layoffs at Sony are part of a broader trend in the industry, following Microsoft’s announcement of laying off 1,900 people, partly linked to the recent acquisition of Activision-Blizzard. The gaming industry has witnessed numerous downsizing efforts since late 2023, reflecting the challenges faced by studios of all sizes as they aim to navigate through 2024.
The move signals a challenging period for the gaming industry, with major players taking strategic steps to adapt to evolving market dynamics.
