Sony Interactive Entertainment (SIE) has announced that it is undergoing a restructuring within its organization and will begin to reduce its workforce by approximately 900 people. This includes employees worldwide, including PlayStation Studios, with the dissolution of the London Studio among the plans.
SEE to begin a workforce reduction of approximately 900 employees.
SEE announced its restructuring plan on SEE.Blog on the evening of Monday, February 27, 2024 (Japan time). The company announced that it will cut approximately 900 employees, or about 8% of its total workforce.
President and CEO Jim Ryan said that the contributions of the extremely talented employees who have played a part in the company's success are irreplaceable, but also noted the significant changes in the gaming industry today. He commented that it is necessary to adjust our structure in order to continue to deliver the best gaming experience to meet the expectations of developers and gamers.
SEE.Blog also published the contents of an email sent to employees. Blog, in which he stated that the reduction in workforce is targeted at employees in all regions, and also specifically mentioned the dissolution of the London Studio and Firesprite.
Contents of the email (excerpts)
After months of careful consideration and numerous discussions with our leadership team, we have come to the conclusion that this reform is necessary in order to continue to grow SEA's business and develop the company.
The reduction of approximately 900 employees (approximately 8%) of SEA's current workforce is envisioned. This includes employees in all regions, including the Americas, Europe, Japan, and the rest of Asia Pacific. Several PlayStation Studios studios will also be affected.
In the UK, SEA proposes the following Reduction in headcount at Firesprite, also a PlayStation Studios studio.
SIE.BlogIn Japan, we will offer a "Next Career Support Program" to help employees move outside of SEA. Details will be announced separately. In other countries, we will begin interviewing employees who are or may be affected by the restructuring.
In addition, Hermen Hulst, general manager of PlayStation Studios, announced the de facto cancellation of some projects that are still in the development stage due to this workforce reduction. " One thing I want to emphasize is that the cancellation of some projects is not due to the talent or passion of the members involved." The sadness is evident in comments such as.
The PlayStation 5 has been on the market for four years and its supply to the market is heading toward stability. On the other hand, one can sense that the wind is blowing hard, as evidenced by the downward revision of the sales target volume, and the high global prices are no doubt a factor. With layoffs, mergers and acquisitions, and new entrants, 2024 is likely to be a year of restructuring in the gaming industry.