Sony said on Tuesday that it will lose 900 jobs, or 8% of PlayStation’s global workforce.
According to a PlayStation news statement, Sony Interactive Entertainment’s layoffs will affect all regions, with its in-house London studio, which is responsible for the competitive singing video game “Singstar,” closing entirely.
“These are incredibly talented people who have contributed to our success, and we are very grateful,” said Jim Ryan, president and CEO of Sony Interactive Entertainment. “However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead.”
Sony To Lay Off 900 At PlayStation As Tough Times For The Video Games Industry Persist
According to Bloomberg, the personnel cut comes after the business lowered its sales expectations for the year and Naomi Matsuouka, Sony’s senior vice president, stated that the PlayStation 5 console was nearing the end of its lifecycle.
Ryan stated in September that he would resign as president of Sony Group Corporation in March. Hiroki Totoki, the COO and CFO, will serve as interim CEO.
Sony To Lay Off 900 At PlayStation As Tough Times For The Video Games Industry Persist
The incoming CEO will face an entire tech sector in turmoil, with industry giants laying off 5,500 staff in the first two weeks of 2024 alone.
Specifically, the video gaming industry has seen employment losses from 2023 into this year, with Epic Games slashing 830 workers last September and Tencent’s Riot Games laying off 11% of its workforce in January.
Sony To Lay Off 900 At PlayStation As Tough Times For The Video Games Industry Persist
In his email to employees, Ryan echoed the leadership of those other game firms, saying, “We had to step back, look at our business holistically, and move forward focusing on the company’s long-term sustainability and delivering the best experiences possible for our community.”
Sony Group Corporation’s (SONY) stock declined less than 1% after the announcement on Tuesday.
SOURCE – (CNN)
