900 jobs lost as Sony restructures PlayStation unit

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 28 Feb 2024
PlayStation CEO Jim Ryan.
PlayStation CEO Jim Ryan.

Sony Interactive Entertainment (SIE) has announced a restructuring plan that will see about 900 jobs eliminated from its PlayStation division worldwide – about 8% of its global workforce. The layoffs will affect employees across all regions.

In a statement yesterday, Sony said the cuts are required as the company contends with changes in the industry, including a post-pandemic slowdown in hardware sales and increased competition from subscription services.

“Our goal at PlayStation Studios has always been to make the best games for PlayStation fans, and our global community of studios represent some of the most creative and talented teams within the gaming industry,” says Hermen Hulst, head of PlayStation Studios.

“PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs.”

Hulst noted the company evaluated its studios and projects, and decided not to move forward with those projects, leading to the layoffs.

“Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games.”

In a separate statement, PlayStation CEO Jim Ryan adds: “These changes will better position us for continued success, but we recognise they will impact individuals and teams. Our goal is to remain agile and adaptable, and to continue to focus on delivering the best gaming experiences possible now and in the future.”

The retrenchments underscore the ongoing job cuts within the tech industry, where even established organisations such as Google, PayPal and Microsoft have made significant reductions in their global workforces.