Sony layoff 900 jobs globally after PlayStation 5 projection revision

Sony Group Corp. has announced significant restructuring within its video-game division, resulting in the termination of 900 jobs globally, equating to approximately 8% of its workforce, and the closure of a division based in London.

Jim Ryan, the departing President and Chief Executive Officer of Sony Interactive Entertainment, addressed the layoffs in a note to staff, citing the necessity for changes to sustain business growth and company development.

The layoffs will not only affect Sony's workforce but also impact prominent game developers associated with Sony, including Insomniac (known for Spider-Man), Naughty Dog (famous for The Last of Us), and Guerrilla (recognized for Horizon), three of its most successful subsidiaries.

This decision comes in the wake of Sony revising its projections for the PlayStation 5 console, which caused a notable decline in Sony's shares earlier this month.

The gaming industry has witnessed a considerable number of job cuts this year, with more than 6,000 employees losing their jobs. Factors contributing to this trend include escalating budgets, a slowdown in spending post-pandemic, and increasing interest rates.

The restructuring efforts by Sony underscore the challenges faced by companies within the gaming sector amidst a changing economic landscape and shifting consumer preferences.