Heaptalk, Jakarta — Japan’s Sony Interactive Entertainment declared it will lay off about 900 employees. Becoming the tech layoff this week, Sony’s job-cutting impact variety of its PlayStation business unit, covering Insomniac games, Naughty Dog, Guerrilla Games, and Firesprite.
Sony explained changes around the industry are the primary reason for performing restructuring resolution. As the electronics industry faces a business slowdown, job cuts will occur in the US, Japan, Europe, Africa, the Middle East, and Asia Pacific.
According to the Newzoo industry tracker, the global video game market is only growing by 0.6%, approximately US$184 billion last year. This output is claimed to be better than before, which experienced a decline of more than 5% in 2022.
Following this layoff, the Guardian reported that Sony’s PlayStation Studio in London will close completely. In addition, reductions will occur in various functions across Sony Interactive Entertainment in the UK. Nevertheless, severance benefits will be provided to those employees who are affected.
“The PlayStation community means everything to us. But, we have announced our plan to reduce our overall headcount globally by about 8% employees, subject to local law and consultation processes,” said the President and CEO of Sony Interactive Entertainment, Jim Ryan.
As is well known, this layoff come two weeks after the company slashed its sales estimation for the PlayStation 5 after warning of decreasing demand. Previously, Sony also expected to vend about 21 million console units in its fiscal year, down from its previous forecast of 25 million consoles. As this employee reduction move occurred, Sony shares were down about 0.3% on Tuesday.
“This will not be easy, and I know its impact on wellbeing. Affected employees will receive support, including severance benefits. While these are challenging times, it does not indicate a lack of strength in our company, brand, or industry. Our goal is to remain agile and adaptable to focus on delivering the best gaming experiences possible now and in the future,” Ryan affirmed.
