PlayStation is Laying Off About 900 People

PlayStation has announced layoffs across multiple studios, continuing a troubling trend for the gaming sector in 2024. The move is just the latest set of mass layoffs the gaming industry has faced in the past year. With PlayStation's latest announcement, it appears this trend is unlikely to slow down in the months ahead.

Last year, some of Sony's first-party studios like Media Molecule and Visual Arts Group were impacted by layoffs, along with cutbacks from The Last of Us maker Naughty Dog. These announcements were followed up by rumors of more layoffs on the way, though the company offered no details at the time. Now, as the gaming industry has already claimed over 6,000 layoffs within the first two months of 2024, Sony is also seemingly taking more drastic cost-cutting measures.

Sony announced that it was laying off 900 PlayStation employees, about 8% of its global workforce. The impacted sectors include its VR games division, where Sony is shutting down its London studio, and downsizing Firesprite, the developer behind Horizon Call of the Mountain VR game. The layoffs also include staff from Guerrilla, Naughty Dog, and Insomniac Games, confirming rumors of Sony pressuring staff cuts from the Spider-Man 2 developer. Commenting on the news, outgoing PlayStation chief Jim Ryan stated that the decision comes after months of discussion within the leadership and that it's a means to «move forward focusing on the long-term sustainability of the company» while «delivering the best experiences possible» for PlayStation.

The layoffs come just days after Sony announced that it missed the PS5 sales target and that the console had entered the latter half of its lifecycle. The news was shortly followed by Sony losing $10 billion in stock value, likely owing to the projected sales and poor margins. Analysts have pointed out that the cost of making games has been noticeably rising and that it may be hitting Sony's financial performance significantly.

The announcement comes amid