PlayStation has recently unleashed its intention to reduce its global workforce by 8%, resulting in the termination of 900 positions. This decision affects various PlayStation-owned studios, including Insomniac Games, Naughty Dog, and Guerilla Games. Notably, PlayStation Studios' London Studio is slated for complete closure.
This development adds to the ongoing trend of layoffs in the gaming industry, with Microsoft having laid off 1,900 employees from its video game division in January and Supermassive Games, the developer of Until Dawn, also recently announcing staff reductions.
Jim Ryan, President & CEO of Sony Interactive Entertainment, addressed the decision in a blog post, acknowledging the impact on "incredibly talented individuals." He explained that the layoffs are a response to the significant changes in the industry, emphasizing the need to adapt to ensure future readiness.
The announcement includes a copy of an email from Ryan to PlayStation staff detailing the extent of the layoffs. Hermen Hulst, head of PlayStation Studios, confirmed that several PlayStation Studios worldwide would be affected. In Europe, PlayStation Studios’ London Studio will close entirely, and Guerrilla Games and Firesprite Studio will experience workforce reductions. In the U.S., Insomniac Games and Naughty Dog, developers of Marvel's Spider-Man and The Last of Us, respectively, will also face a reduction in workforce, along with various teams in the region.
Ryan assured that affected employees globally, spanning Europe, the Americas, and Asia, will receive support, including severance benefits. The post also highlighted the closure of London Studio, which has been instrumental in creating first-party PlayStation titles since its establishment in 2002, including the SingStar series and notable PSVR titles such as Blood and Truth and PlayStation VR Worlds.
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