PlayStation is laying off around 8% of its workforce, shuts down London Studio

by Danny Craig  · 
PlayStation is laying off around 8% of its workforce, shuts down London Studio

Sony Interactive Entertainment has announced a significant wave of layoffs across its development studios, affecting approximately 8% of the company's total workforce, the closure of London Studio, and multiple project cancellations.

The details:

  • SIE president and CEO Jim Ryan confirmed the news in a blog post, stating that the company had made the "extremely hard decision" to lay off approximately 900 employees across many of its studios. “These are incredibly talented people who have been part of our success, and we are very grateful for their contributions,” Ryan’s statement reads. “However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead. We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community.”

  • Naughty Dog, Insomniac, Firesprite, and Guerrilla are among the studios affected, while VR developer London Studio will close entirely. The cuts will also affect PlayStation's technology, creative, and support teams based in the US.

  • Hermen Hulst, the head of PlayStation Studios, has also commented on the situation, confirming that multiple projects have been cancelled, which likely includes London Studio's co-op title set in a fantasy version of London.

  • SIE laid off a number of employees last year across Bungie, Naughty Dog, and Dreams developer Media Molecule. Its rival, Microsoft, has also made significant cuts over the past year, with 1,900 employees being let go across Xbox, Activision Blizzard, and Bethesda in January 2024.

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