by Sony said today that it will lay off around 900 people, or 8% of PlayStation’s global headcount, the latest layoffs to hit the gaming industry.
In a blog post titled “Difficult Workforce News,” the company said employees across the globe, including studios, are affected. The entire US team will be briefed today.
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“The PlayStation community means everything to us, so I felt it was important to update you on a difficult day at our company,” wrote Jim Ryan, president and CEO of Sony Interactive Entertainment. “The industry has changed enormously, and we have to prepare ourselves in the future to prepare the business for what lies ahead. We need to meet the expectations of developers and gamers and continue to drive the future of technology in gaming, so we’ve taken a step back to ensure we’re set to continue bringing the best gaming experiences to the public. “
“Please be assured that our plans for reorganization and streamlining so that we can continue to deliver the best gaming experiences possible.”
The news comes amid a wave of cuts to technology and entertainment. Microsoft laid off 1,900 employees from its games office in late January after acquiring Activision.
Ryan shared an email sent to employees this morning, below:
Subject: Important Update on Organizational Restructuring
team,
It is important to provide you with updates about the business as often as possible. Today, I am writing with sad news. Through the discussions over the past few months about the changing economic landscape, changes in the way we develop, distribute and ship products, and ensuring our organization is future ready in this rapidly changing industry , we have come to the conclusion that tough decisions are now inevitable. The leadership team and I made the extremely difficult decision to restructure operations, which unfortunately includes a reduction in our workforce that affects talented individuals who have contributed to our success.
After careful consideration and many leadership discussions over several months, it is clear that changes are necessary to continue growing the business and developing the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best possible experiences for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver the experiences gamers and creators expect from us.
I want to be as transparent as possible with you, our partners, and our community about what this means:
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We plan to reduce our headcount by approximately 900 people, or approximately 8% of our current workforce
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Employees will be affected across all EES regions – Americas, EMEA, Japan and APAC
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Several PlayStation Studios are affected
I know this news will be difficult to receive and you are wondering what this means for you. Timelines and procedures for how we do this will vary based on your location due to local laws and regulations.
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For those of you in the US, all affected employees will be notified today.
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In the UK, it is planned to:
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That the London Studio will close PlayStation Studios in its entirety;
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That there will be reductions on Firesprite studio;
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And that there will be reductions in various functions across SIE in the UK.
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The proposed changes mean that we will enter a period of consultation before any final decisions are taken. All employees who are part of the collective consultation will be informed of the next steps today.
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In Japan, we will implement the next career support program. Details will be communicated separately.
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In other countries, we will initiate conversations with those who may be at risk or affected by the proposed action.
To those who will be leaving SIE: You are leaving this company with our deepest respect and gratitude for all the efforts you have made during your tenure.
For those who will be staying at SIE: We will be saying goodbye to dear friends and colleagues during this process, and this will be painful. Your resilience, sensitivity and adaptability will be crucial in the coming weeks and months.
This will not be easy, and I know the impact it will have on wellbeing. Affected employees will receive support, including retirement benefits. While these are challenging times, it does not reflect a lack of strength in our company, our brand, or our industry. Our goal is to remain agile and adaptable and continue to focus on delivering the best possible gaming experiences now and in the future.
Thank you for your understanding during this difficult time. Please be kind to yourselves and to each other.
Jim
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