In a surprising turn of events, PlayStation has announced another round of layoffs just days after a major management shakeup. The layoffs are part of the company’s ongoing efforts to streamline operations and adapt to the rapidly changing gaming industry.
900 Employees Laid Off
Sony Interactive Entertainment laid off approximately 900 employees from its PlayStation division, which accounts for about 8% of the unit’s global workforce.
Sales Forecast Cut
Sony recently cut its sales forecast for the PlayStation 5 from 25 million units to 21 million units for the fiscal year ending in March. The recent management changes, which saw several high-level executives replaced, have created uncertainty among employees. This latest round of layoffs is expected to affect a significant number of staff across various departments. PlayStation’s CEO, Jim Ryan, stated in a blog post that the company needs to “future ready” itself to stay competitive. However, the timing of these layoffs has raised concerns among employees and industry observers alike.
Jim Ryan, CEO of PlayStation
“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company.”
Hiroki Totoki, CEO of Sony Corp.
“My predecessors as CEO, Kazuo Hirai and Kenichiro Yoshida, have greatly enhanced Sony’s value, and I will do my utmost to further build on this success and pass on an even better Sony to the next generation.”
The layoffs come on the heels of previous cuts made last year, which saw 900 employees let go and the closure of several studios. The company has also been integrating SN Systems, a subsidiary acquired by Sony, into its operations. Despite the challenges, PlayStation remains committed to delivering high-quality gaming experiences to its customers. The company is also gearing up for the launch of its next-generation console, the PlayStation 6, which is expected to bring new innovations to the market.
Oscar Diaz (Ryosuke), Former PlayStation Employee
“It was a dream to get to work with Sony on the platform I’d grown up playing since the PS1 and contribute to the PS5, Portal, PSVR2, PS App, and future consoles.”
As the gaming industry continues to evolve, PlayStation will need to navigate these changes carefully to maintain its position as a leader in the market.
Industry-Wide Layoffs
The gaming industry has seen significant layoffs over the past few years, with an estimated 33,600 developers laid off between 2022 and 2024.