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Sony has announced a significant number of layoffs, reducing its PlayStation workforce by around 8%. This will result in around 900 staff losing their jobs, including the closure of its London Studio.
Developers such as ‘The Last of Us’ developer Naughty Dog, ‘Marvel’s Spider-Man 2’ developer Insomniac Games have been affected, as well as staff at Guerilla Games and Firesprite. However it’s PlayStation’s London Studio that has been most drastically affected.
The news was announced by Sony Interactive Entertainment on the company’s blog, wherein outgoing CEO Jim Ryan described the cuts as a “difficult day at our company.” In the statement, Ryan went on to say that he was “grateful” for the contributions of the “incredibly talented” staff before citing ‘immense industry changes’ as a catalyst for the decision.
Per IGN, PlayStation employees in the U.S. will find out today whether they will remain with the company. However, UK employment laws prohibit mass layoffs. This means that the proposed closure of London Studio will require a consultation process. London Studio had previously produced titles for PlayStation VR as well as several ‘Singstar’ titles and entries in PlayStation’s dormant ‘The Getaway’ franchise. The status of any current London Studios projects is unknown, however it seems likely that any in-development games will be cancelled. Staff at fellow UK-based studio Firesprite are also subject to layoffs. Per IGN, the status of that studio’s project is also unknown at this stage.
These layoffs at PlayStation follow one of the most tumultuous periods for staff in the video game industry. Mass layoffs have took place throughout 2023 and the unfortunate trend appears to be continuing into 2024.