Sony has decided to cut around 900 jobs at its PlayStation division, including closing its London studio entirely.
The gaming giant's CEO, Jim Ryan, said the company had made the “very difficult decision” because “the industry has changed dramatically” and the company needed to “prepare for the future to prepare the business for what lies ahead.”
The cuts represent about 8% of PlayStation's total global workforce and follow several other technology and gaming companies that have made job cuts in recent months in response to ongoing global economic uncertainty.
In an email sent to PlayStation employees, Mr Ryan confirmed that the proposed cuts would see the company's London studio close “completely”, with staff reductions also occurring at Liverpool-based Firesprite Studio, and that there would be “reductions in various functions”. Via Sony Interactive Entertainment (SIE) in the UK.”
“The PlayStation community means everything to us, so I felt it was important to update you on what has been a difficult day at our company,” Ryan said in a blog post about the sale.
“We have made the very difficult decision to announce our plan to begin reducing our total headcount globally by approximately 8%, or approximately 900 people, subject to local law and consultation processes. Employees around the world are affected, including our studios.
“These are incredibly talented people who have been part of our success, and we are very grateful for their contributions.
“However, the industry has changed significantly, and we need to prepare for the future to prepare businesses for what lies ahead.
“We need to meet developer and player expectations and continue to push future technology in games, so we've taken a step back to make sure we're ready to continue delivering the best gaming experiences to the community.”
Earlier this month, Sony lowered its sales forecast for the PlayStation 5 console by four million.
The gaming and technology sector has seen widespread job cuts over the past year, with thousands of staff cuts at companies like Meta, Amazon, TikTok, Snapchat and others.
Last month, Microsoft also announced that it would lay off 1,900 employees at Xbox and Activision Blizzard.
