Sony Interactive Entertainment has announced the unfortunate news of a workforce reduction, affecting 900 employees globally, which is approximately 8% of the company’s total headcount. This decision follows a similar move by Microsoft, which recently let go of 1900 staff.
The official statement mentions that employees worldwide, including studios, are impacted. While specific details are provided for the UK properties affected, the overall impact across all SIE regions – Americas, EMEA, Japan, and APAC – is acknowledged. Several PlayStation Studios are also affected by these changes.
In the UK, notable casualties include the closure of PlayStation Studios’ London Studio, reductions in Firesprite studio, and cutbacks in various functions across SIE. Sony’s London Studio, known for creating iconic PlayStation lifestyle brands like SingStar and EyeToy, will cease operations.
The workforce reduction also affects Firesprite, known for their work on PlayStation VR titles like Horizon VR: Call of the Mountain. Additionally, an unnamed online multiplayer game set in a modern-day fantasy London, currently in development, may be canceled.
Jim Ryan, president & CEO of Sony Interactive Entertainment, expressed gratitude towards the affected employees and emphasized the need to align the business with future technological advancements in gaming. These strategic changes are aimed at ensuring the company’s continued success and delivering top-notch gaming experiences.
Looking ahead, Sony is preparing for a transformed landscape in the next generation of PlayStation hardware. The company is shifting towards cloud gaming, emphasizing software services, subscriptions, and expanding their presence on non-Sony devices like mobile and smart TVs. This shift signals a departure from solely relying on expensive, proprietary hardware.
The email communication from Jim Ryan to the company outlines the rationale behind the restructuring and the need to adapt to evolving market dynamics. The company plans to reduce headcount by 900 employees, with impacts felt across all SIE regions. Specific details for each region, including support programs and proposed changes, will be communicated individually.
While these changes are undoubtedly difficult, Sony is committed to supporting affected employees through severance benefits and providing assistance during this transition period. The company’s focus remains on delivering exceptional gaming experiences while ensuring long-term sustainability in a rapidly changing industry.
