- Sony has announced that it will lay off approximately 900 employees from its PlayStation division.
- The decision comes as the gaming market is slowing and Microsoft and other companies are cutting jobs.
- Read CEO Jim Ryan's email to employees.
Sony Interactive Entertainment will lay off about 900 people from its PlayStation division.
Jim Ryan, president and CEO of Sony Interactive Entertainment, said in a blog on the Sony Interactive Entertainment website on February 27 that the entertainment giant is expanding its operations in the Americas, Europe, Japan, and Asia Pacific. It said it would cut about 8% of the department's workforce.
PlayStation Studios' London studio is closing, Ryan wrote.
“My management team and I have made the very difficult decision to restructure our operations, which unfortunately includes reducing our workforce,” Ryan said in an email to employees. The content was shared in the release.
Ryan plans to retire at the end of March, as he wrote in a press release shared in September.
PlayStation is the latest gaming giant to announce job cuts due to the slowing gaming market. In January, microsoft Activision Blizzard, Xbox, and ZeniMax announced the layoffs of 1,900 employees. Video game software provider Unity announced in January that it would cut 1,800 jobs. More than 6,400 gaming roles will be eliminated by 2024.
Sony Interactive Entertainment did not respond to Business Insider's request for comment.
Read the full email the CEO sent to employees.
Subject: Important notice regarding organizational reorganization team, It's important to provide updates about your business as often as possible. Today I'm writing some sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way products are developed, distributed, and launched, and ensuring organizations are future-ready in this rapidly changing industry, we have learned that tough decisions are inevitable. I came to the conclusion that no. My management team and I have made the very difficult decision to restructure our business, which unfortunately includes reducing our workforce and retaining some of the very talented people who have contributed to our success. is affecting. After careful consideration and many months of leadership discussions, it became clear that changes needed to be made to continue to grow the business and advance the company. We had to take a step back, look at our business holistically, and move forward with a focus on the long-term sustainability of our company and providing the best possible experience for our community. Our goal is to streamline our resources to ensure continued success and enable us to deliver the experiences gamers and creators expect. We want to be as transparent as possible with our customers, partners, and communities about what this means.
The Company expects to reduce its workforce by approximately 900 employees, or approximately 8% of its current workforce. Employees in all SIE regions are affected: Americas, EMEA, Japan, and APAC. Several PlayStation Studios are affected We understand that this news is difficult and unsettling to receive, and you may be wondering what this means for you. The timelines and procedures for how we approach this will vary depending on your location, depending on local laws and regulations..
For residents of the United States, all affected employees will be notified today. In the UK it is proposed that:
PlayStation Studios' London studio will be permanently closed. Reductions are made in Firesprite Studio. A range of functions will be cut across SIE in the UK. The proposed changes will enter a period of collective consultation before a final decision is made. All employees participating in the collective consultation will be informed of next steps today.
We will also implement the Next Career Support Program in Japan. Details will be announced separately. In other countries, we will also begin dialogue with people potentially at risk or affected as a result of this proposed course of action. To those retiring from SIE: It is with deep respect and gratitude that I am retiring from SIE. To those who remain at SIE: We understand that this process will be very difficult as you will be saying goodbye to dear friends and colleagues. Your resilience, sensitivity and adaptability will be critical in the coming weeks and months. This is not easy, but we know the impact it has on our well-being. Affected employees will receive support, including severance pay. Although these are difficult times, this does not indicate a lack of strength in our company, our brand or our industry. Our goal is to remain agile and adaptable, and remain focused on delivering the best gaming experience possible now and in the future. Thank you for your understanding during this difficult time. Be kind to yourself and each other. Gym
Are you a Sony employee affected by PlayStation's layoffs? If you have a story to share, contact this reporter at sgoel@businessinsider.com.