Sony to lay off 900 at PlayStation as tough times for the video games industry persist

Sony to lay off 900 at PlayStation as tough times for the video games industry persist

Sony, the renowned electronics giant, made an announcement on Tuesday regarding significant job cuts within its PlayStation division, amounting to 900 positions, which represents approximately 8% of the global workforce associated with PlayStation.

According to a press release issued by PlayStation, the layoffs will impact all regions under Sony Interactive Entertainment, with the closure of its in-house London studio responsible for the creation of the competitive singing video game “Singstar”.

Jim Ryan, the President and CEO of Sony Interactive Entertainment, expressed gratitude towards the affected employees for their invaluable contributions to the company’s success. He emphasized the necessity of adapting to the evolving industry landscape to position the business for future challenges.

This decision to reduce the workforce comes on the heels of Sony revising down its sales forecasts for the year. Naomi Matsuouka, Senior Vice President at Sony, also noted that the PlayStation 5 console was nearing the latter stages of its life cycle, according to reports from Bloomberg.

Ryan’s announcement of his plans to retire as President of Sony Group Corporation in March was made back in September. In his place, Hiroki Totoki, currently serving as Chief Operating Officer and Chief Financial Officer, will assume the role of interim CEO.

The incoming CEO will be taking charge in a tech sector undergoing significant upheaval, with industry giants collectively laying off 5,500 workers within the first two weeks of 2024.

In particular, the video game industry has witnessed substantial job losses, with Epic Games cutting 830 positions in September of the previous year and Tencent’s Riot Games reducing its workforce by 11% in January.

Ryan echoed sentiments expressed by leadership at other game companies, emphasizing the need to reassess the business comprehensively and prioritize long-term sustainability and providing the best experiences for the gaming community.

Following the announcement, shares of Sony Group Corporation (SONY) experienced a marginal decline of less than 1% on Tuesday.