PlayStation lays off 8% of workers, teases closing London studio

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Kratos from PlayStation’s God of War screaming in a snowy forest

The games industry’s mass layoffs continue with Sony PlayStation. Following Xbox’s layoffs of almost 2,000 employees, PlayStation layoffs have resulted in 8% of employees being cut as well as the closure of an entire studio.

Announced in a blog post, Sony Interactive Entertainment boss Jim Ryan described the situation as an “extremely hard decision” and a “difficult day for our company”.

Ryan shared an email sent to Sony employees across the world to “commence a reduction of our overall headcount globally by about 8% or about 900 people”. The PlayStation layoffs are planned for all of the company’s businesses around the world, subject to each country’s labour laws.

For example, US-based PlayStation employees will be informed today whether they are still employed at the company. In the United Kingdom, decisions are yet to be made, and must go through various legal processes.

In response to the UK’s legal barriers, Sony has teased plans to shut down its London office to speed up layoffs in the region. This would obviously result in the cancellation of London Studio’s in-development PS5 co-op game set in a fantasy version of the great city.

“This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits,” Ryan told workers. “While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry. 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.”

PlayStation is just the latest company to announce mass layoffs. In the game’s industry alone, we’ve seen layoffs affect tens of thousands of developers across indie studios, AA developers and even the largest companies in the world - all for the sake of increasing already vast profit margins.

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With PlayStation revenue down following peak sales of PS5, it’s not surprising to see some layoffs at the company. However, the sheer percentage of employees being let go globally is shocking.

While gamers are receiving massive games like Final Fantasy 7: Rebirth and Spider-Man 2, it’s a dark day for those who actually work on games.

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