Sony PlayStation lays off 900 employees

Sony is laying off 900 employees (8% of its workforce) in the PlayStation division due to lower PS5 sales. Studios worldwide are affected, including closures and staff reductions. The company maintains this is crucial for long-term growth.

In a move characterized by the company as “extremely difficult but necessary,” Sony Interactive Entertainment, the video game and entertainment subsidiary of Sony Group, announced plans to reduce its global workforce by approximately 8%, impacting roughly 900 employees. This decision comes amidst lower-than-anticipated sales of the company’s flagship PlayStation 5 console.

The announcement, delivered through an internal memo to employees by PlayStation chief Jim Ryan, outlined the scope of the reductions, which will affect studios and teams worldwide. In the United States, studios such as Insomniac Games and Naughty Dog, renowned for popular franchises like “Spider-Man” and “Uncharted,” will be impacted. Additionally, technology, creative, and support teams within the division will see staff reductions.


Across the Atlantic, the restructuring will have a more significant impact. Sony plans to shutter PlayStation London Studio entirely, marking the complete closure of the development team. Furthermore, studios like Guerrilla, known for the “Horizon” series, and Firesprite, responsible for titles like “The Persistence,” will experience staff reductions. Smaller-scale reductions are also anticipated across other PlayStation Studios teams.

While the decision undoubtedly presents challenges for affected employees, Ryan emphasized the strategic rationale behind the move in his memo. He explained, “After careful consideration and extensive leadership discussions over several months, it has become evident that changes are necessary to ensure the continued growth and development of the company.”

This announcement comes on the heels of Sony Group revising its revenue forecast downwards in February 2024, following a slowdown in PlayStation 5 sales during the quarter ending December 31, 2023. While the company acknowledged that PlayStation 5 hardware unit sales for the quarter, at 8.2 million units, marked a record high and surpassed the 50 million unit cumulative sales mark, it fell short of the targeted 25 million units for the fiscal year. Consequently, Sony Group has adjusted its PlayStation 5 unit sales forecast for the current fiscal year to approximately 21 million units.

In conclusion, Sony’s decision to reduce its PlayStation division workforce reflects the company’s efforts to navigate a challenging market landscape marked by lower-than-anticipated console sales. While the move will undoubtedly impact individual employees, the company maintains that it is a necessary step to ensure the long-term success of the PlayStation business.