Sony Announces 900 Layoffs in PlayStation Division
Electronics giant Sony has announced a significant workforce reduction in its PlayStation division, with 900 jobs being cut, representing 8% of the workforce. The layoffs will affect all regions where Sony Interactive Entertainment is located, and the in-house London studio behind the popular video game “Singstar” is set to close completely.
Jim Ryan, president and CEO of Sony Interactive Entertainment, expressed gratitude for the contributions of the affected employees, stating, “These are incredibly talented people who have been a part of our success. However, the industry has changed immensely, and we need to prepare for the future and adjust the business for what is coming.”
The decision to reduce the workforce comes after Sony slashed its sales forecasts for the year and mentioned that the PlayStation 5 console was nearing the end of its life cycle. Additionally, Ryan had already announced his plans to retire in March, with Hiroki Totoki, the chief operating officer and chief financial officer, stepping in as interim CEO.
The news of the layoffs comes amidst a wave of job cuts in the technology sector, with industry giants laying off 5,500 workers in the first two weeks of 2024. The video game sector, in particular, has seen significant job losses, with companies like Epic Games and Riot Games also making substantial cuts to their workforce.
In an email to employees, Ryan highlighted the need to focus on the long-term sustainability of the company and provide the best possible experiences to the gaming community. Despite the announcement, shares of Sony Group Corporation only fell slightly following the news on Tuesday.
The new CEO will face the challenge of navigating a technology industry in turmoil, but Sony remains committed to adapting to the changing landscape and ensuring the future success of its PlayStation division.