The head of Sony's gaming division, Jim Ryan, announced mass layoffs. 900 PlayStation employees will be cut, which is 8% of the staff.
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Layoffs will take place in all regions. The process and timing of layoffs will vary depending on the labor laws of different countries, but Sony promises support to all affected employees.
It is known that some of the developers of Insomniac Games, Naughty Dog, Guerrilla Games and Firesprite will lose their jobs. In addition, the PlayStation London Studio will be closed, the latest game of which was the VR action game Blood & Truth.
Ryan explained the layoffs as "big changes" in the gaming industry. According to him, the company needs to prepare for what lies ahead and optimize its business. This will allow Sony to continue to grow and "provide players and developers with the gaming experience that is expected of them."
In a separate appeal, the head of PlayStation Studios, Hermen Hulst, said that Sony had also canceled several games in development. He did not specify what kind of games they were.
It is noteworthy that Ryan announced the layoffs a few weeks before his resignation. He will leave the company on March 31, 2024.
Earlier it became known that Sony's market value has sharply decreased. After the release of the financial report on February 14, it collapsed by $10 billion in three days. The reason was, in particular, weaker than expected sales of the PlayStation 5 console.
Update: According to journalist Jason Schreier, Guerrilla Games will cut 10% of its staff as part of the layoffs. That's about 40 people. He also found out that among the cancelled projects was a new part of Twisted Metal, which was handled by the Firesprite studio.