Sony PlayStation Division Announces Layoffs Affecting 900 Employees Amid Sales Forecast Revision

Sony Interactive Entertainment announced on Tuesday its intention to lay off approximately 900 employees within its PlayStation division, constituting 8% of its global workforce. This move aligns with a trend seen across various technology companies implementing headcount reductions.

In an email to employees, publicly disclosed by the company, President and CEO of the unit, Jim Ryan, stated, “After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company.” Ryan noted that the layoffs would impact employees across all regions, with the complete closure of PlayStation’s London studio and several other studios also slated for impact.

Sony PlayStation's London studio shut down entirely
PlayStation’s London studio shut down entirely; several other studios were affected.

This decision follows Sony’s reduction of its sales forecast for its flagship PlayStation 5 console on February 14, prompted by a warning of decreased demand. Initially projecting sales of nearly 25 million units for the fiscal year ending in March, Sony revised its forecast to 21 million units.

The company’s stock experienced a significant decline following the announcement of the forecast adjustment. Analysts speculated that Sony might introduce a refreshed version of the PlayStation 5 this year to stimulate interest in the console.

Sales forecast for flagship PlayStation 5
Sales forecast for flagship PlayStation 5 console revised downward, prompting workforce adjustments.

Sony’s announcement adds to a series of layoffs witnessed across the tech industry. In January, Microsoft announced a reduction of approximately 9% of its gaming unit following its acquisition of Activision Blizzard. Subsequently, Cisco and DocuSign revealed plans to downsize their workforces as part of restructuring initiatives.

Despite this news, Sony’s shares were trading relatively unchanged on Tuesday morning.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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