Sony has announced it will be laying off a sizeable chunk of its workforce - around 8% of its employees - today, the company noted. The Japanese gaming giant cited a need to 'set the business up for what lies ahead' as the reason why almost 900 people will be looking for a new gig.
In a post by Sony Interactive Entertainment's CEO Jim Ryan, the company made the decision as the games industry has "changed immensely." In the post, he makes note that the company needs to "set the business up for what lies ahead," which includes reorganizing and streamlining the PlayStation business.
In an email sent to staff (shared by Ryan on the blog post), Ryan lays out what this will mean for employees as the company starts the process of downsizing. The layoffs will hit all regions, from North America, Europe, Japan and more. Several of PlayStation's prestigious studios, with companies like Insomniac Games, Naughty Dog, and others, were affected. PlayStation's London Studio will be shuttered entirely, according to Ryan's email.
Via Ryan's email:
"After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us."
Also announced this morning alongside the layoffs was the news that PlayStation has canceled multiple projects, including an in-development multiplayer modern fantasy title in progress by the London studio. According to Bloomberg's Jason Schreier, an in-development live-service Twisted Metal game, which hadn't yet been fully greenlit, was also canned as part of the layoffs.
In a separate blogpost, Head of PlayStation Studios Hermen Hulst confirmed that projects in development had been canceled as part of the layoffs today, though he stresses that it's "not a reflection of the talent or passion of team members." Rather, this decision was driven, according to Hulst, by a re-evaluation of the way they operate to continue to deliver the "immersive, narrative-driven stories" the company is known for.
The most recent round of layoffs from Sony is just part of the mass games industry layoffs that have continued to decimate talent since last year. Recently, Daybreak confirmed layoffs across its studios, while Microsoft laid off 1900 employees in January as part of its own restructuring.
