Sony Interactive Entertainment (hereinafter SIE) has announced that it will undergo an organizational restructuring and reduce its headcount by approximately 900 employees.
Staff worldwide, including those at PlayStation Studios, are affected by this reduction, and the closure of London Studio is among the planned changes.
SIE to Reduce Headcount by Approximately 900 Employees
PR TIMESSIE announced its structural reform policy on SIE.Blog on Tuesday, February 27, 2024.
The company revealed that it will reduce its workforce by approximately 900 people, which accounts for about 8% of its total global staff.
President and CEO Jim Ryan stated that the contributions of these incredibly talented employees who have been a part of our success are irreplaceable, while also acknowledging the significant shifts in the current gaming industry.
He commented that in order to continue delivering the best gaming experiences and meet the expectations of developers and gamers, it is necessary to reorganize the company.
Additionally, SIE.Blog published the contents of an email sent to employees.
While stating that the workforce reduction affects employees in all regions, the closure of London Studio and changes regarding Firesprite were specifically mentioned.
Email Contents (Partial Excerpt)
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.
- We envision reducing our headcount by about 900 people, or about 8% of our current workforce
There will be impact for employees across all SIE regions – Americas, EMEA, Japan, and APAC
In the UK, it is proposed:
That PlayStation Studios’ London Studio will close in its entirety;
That there will be reductions in Firesprite studio;
And that there will be reductions in various functions across SIE in the UK.
SIE.Blog- In Japan, we will implement a next career support program. Details will be communicated separately.
In other countries, we will begin conversations with those who are potentially at risk or impacted as a result of this proposed course of action.
PR TIMESFurthermore, Hermen Hulst, Head of PlayStation Studios, announced the cancellation of several projects currently in development due to the workforce reduction.
A sense of sorrow was evident in his comments, as he noted, "I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of the team members."
The PlayStation 5 has entered its fourth year since launch, and its market supply has stabilized.
On the other hand, the industry is facing headwinds, such as downward revisions of sales targets and the global rise in prices.
With layoffs, M&As, and new market entries, 2024 is shaping up to be a year of major reorganization for the gaming industry.
Sony Interactive Entertainment announces a reduction in its global workforce: https://t.co/O5hLTYGltq
— PlayStation (@PlayStation) February 27, 2024
