Playstation Parent Company Plans To Terminate 900 Employees

(PatriotWise.com) — Sony Interactive Entertainment, the maker of PlayStation, plans to lay off 900 employees, as the gaming industry continues its post-pandemic cutbacks, NBC News reported.

In a February 27 press release, CEO Jim Ryan said Sony Interactive Entertainment would be laying off 8 percent of its workforce as part of its effort to “restructure operations.”

As part of its restructuring, Sony will also close down the London PlayStation Studio.

In an email to employees, Ryan blamed the “evolving economic landscape” and changes in how the company develops, distributes, and launches products. He said Sony needed to ensure that the company was “future ready in this rapidly changing industry.”

Ryan described the 900 workers as “incredibly talented” and credited them for their part in the company’s success. However, he said the immense changes in the gaming industry required Sony to prepare itself for the future.

Sony Interactive Entertainment is the latest video game company to announce cuts in its workforce.

Supermassive Games, the developer behind such horror games as “The Quarry” and “Until Dawn,” said in a statement on Monday that it would be laying off some workers.

In January, PlayStation competitor Microsoft Gaming announced that it was cutting roughly 1,900 jobs.

The latest round of job cuts comes after thousands of workers in the video game industry were let go in 2023.

According to industry estimates, over a span of 14 months, about 6,500 workers were laid off. However, unofficial estimates suggest that the total could be much higher.

The job cuts were in part due to the video game industry cutting back from the pandemic lockdown boom. Much like streaming services, video game companies thrived during the lockdowns while Americans were spending more time at home and were relying more on home entertainment.

With Americans largely returning to life as usual, video gaming companies were forced to cut back on workers.

Sony Interactive Entertainment told NBC News that the company’s goal was to continue meeting its customer’s expectations and delivering “the best gaming experiences” by being a more resilient company.

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