The ongoing crisis in the gaming industry does not stop at the big players. As Sony Interactive Entertainment announced today, around 8 percent of its workforce will be put on the streets.
The layoffs in the industry just won’t stop and now even Sony has been hit, despite good sales figures and a strong position in the market. In one open letter The company announced that 8 percent of its workforce, or the equivalent of around 900 employees worldwide, would lose their jobs.
The justification includes the typical dismissal bingo of “talented people”, “preparing for the future” and “ensuring that we can continue to offer the community the best gaming experiences in the future”, which is probably little consolation for the 900 employees .
At least Sony is trying to be transparent, because an email that was sent to Sony employees can also be viewed. It says: “After careful consideration and many discussions among management over several months, it became clear that changes were necessary to further expand the business and develop the company. We had to take a step back, look at our business holistically and ourselves “We focus on the long-term sustainability of the company and providing the best possible experiences for our community. The goal is to streamline our resources to ensure our continued success and provide players and developers with the experiences they expect from us.”
Employees in all SIE regions as well as various Playstation studios are affected. Some specific information is also available. The London Studio will be closed completely and layoffs are to be expected at Firesprite Studio, which, among other things, was developing the VR offshoot of Horizon. Other affected employees should be informed shortly.
Jim Ryan, President & CEO of Sony Interactive Entertainment, concluded: “This will not be easy, and I recognize the impact on well-being. The affected employees will receive support, including severance payments. While these are difficult times, this is not Signs of a lack of strength in our company, brand or industry. Our goal is to remain agile and adaptable and remain focused on providing the best possible gaming experiences now and in the future.”
Sony recently confirmed weaker console sales than forecast in its quarterly report, and there would be no releases for the major Playstation brands such as God of War or Spider-Man in the next 12 months, but rather smaller releases such as Rise of the Ronin, Stellar Blade and Until Dawn (whose studio is also currently being evaporated).
So 2024 remains an extremely uncomfortable year that has already seen a number of layoffs, including at Microsoft / Activision Blizzard, where almost 2,000 employees will lose their jobs.
Sony is giving more rubber to gaming peripherals and is bringing three headsets and two monitors from the new Inzone series onto the market this year.
