PlayStation Announces Massive Layoffs — 900 Employees Fired, Internal Sony Studio Shutdown, Game Cancellations

Sony Interactive Entertainment, the Japanese company that manufactures PlayStation, has announced significant staff cuts following similar news from fellow ‘big three’ member, Microsoft.

Outgoing PlayStation chief, Jim Ryan, confirmed the layoff of nearly 900 employees worldwide, equating to around 8% of the total workforce.

Ryan described the decision to restructure and lay off a vast number of staff as incredibly difficult but necessary under the current circumstances to ensure the company’s ongoing development and growth.

The aftermath of Playstation's mass layoff. Source: PC Gamer

The layoffs will affect Sony’s internal studios such as Naughty Dog, Insomniac Games, Guerrilla Games and Firesprite Games, along with specialists from several support teams focusing on technology, support, and creative aspects.

Furthermore, the London Studio (Blood & Truth), known for its work on a co-op action game for PS5 set in fantasy London, will be closed as part of the initiative.

Concept art of the London Studio game. Source: Sony Interactive Entertainment

In a press statement concerning these recent events, Hermen Hulst, PlayStation Studios head, also mentioned that several under-development games have been cancelled as part of the restructuring process, though it remains unclear exactly which ones.

Hulst stated that experimentation has always been encouraged at PlayStation, but not all good ideas evolve into excellent games before shifts in market trends or industry paradigms occur.

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