Sony Interactive Entertainment is laying off around 900 workers, or 8% of the company, outgoing president and CEO Jim Ryan said in a news release published on Tuesday. Employees from all regions — North America; Europe, the Middle East, and Africa; Japan; and Asia-Pacific — are impacted by the cuts, including several PlayStation development studios. London Studio, the in-house team that created the SingStar series, will close entirely, Ryan said. It was also revealed Naughty Dog, Insomniac Games, and Guerrilla Games will see layoffs.
“These are incredibly talented people who have been part of our success, and we are very grateful for their contributions,” Ryan said in the news release. “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.”
Impacted employees from the United States will be notified on Tuesday, Ryan said in an email to staff published on the Sony Interactive Entertainment website. United Kingdom labor laws require companies to enter a period of consultation before layoffs are made final; the London studio closure, layoffs at Firesprite Studio, and other redundancies are “proposed” for now. Japanese employees will have access to a “a next career support program,” Ryan said.
Ryan said impacted employees will “receive support, including severance benefits,” but did not elaborate further.
PlayStation Studios’ London Studio was founded in 2002 as a first-party PlayStation developer; it developed gangster epic The Getaway, music game SingStar, and games for the PlayStation webcam like EyePet before moving on to virtual reality games for PlayStation VR. Firesprite was acquired by Sony Interactive Entertainment in 2021; it also worked on virtual reality games, like Horizon Call of the Mountain, among other things.
“While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry,” Ryan said in the letter to staff. “Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.”
The workplace cuts come shortly after Sony’s recent financial report, wherein Sony chief operating officer and president Hiroki Totoki said that Sony Interactive Entertainment has no “major projects” due for release before March 2025. Totoki will take over as Sony Interactive Entertainment’s interim CEO when Ryan leaves the PlayStation business in April. Speaking during the financial presentation, Totoki spoke about PlayStation’s first-party studios, saying there’s “room for improvement” with how these studios spend money, schedule development, and stay accountable toward development pipelines.
The video game industry has been particularly volatile over the past several years. This has created an industry crisis, adding to the pressures of an already challenging profession. According to an industry tracker, more than 7,000 people have been laid off in 2024 alone — a number that is quickly approaching the more than 10,500 people laid off in 2023.
Update (10:30 a.m. EDT): PlayStation Studios head Hermen Hulst posted an additional update that confirmed layoffs at Insomniac Games, Naughty Dog, Guerrilla Games, and in the Technology, Creative, and Support divisions.
Hulst said there are smaller cuts at other studios. He also confirmed that several games have been canceled, but did not say which ones. Here’s his full message:
Today, Sony Interactive Entertainment initiated a reduction in our workforce – including within PlayStation Studios – and I wanted to talk about the impact that will have.
These decisions have been extremely difficult, but they are necessary, and I think it’s important to be transparent:
The US based studios and groups impacted by a reduction in workforce are:
- Insomniac Games, Naughty Dog, as well as our Technology, Creative, and Support teams
In UK and European based studios, it is proposed:
- That PlayStation Studios’ London Studio will close in its entirety;
See AlsoSony Announces Significant PlayStation Layoffs Affecting 900 Staff, London Studio to Close - IGN- That there will be reductions in Guerrilla and Firesprite
These are in addition to some smaller reductions in other teams across PlayStation Studios.
Our goal at PlayStation Studios has always been to make the best games for PlayStation fans, and our global community of studios represent some of the most creative and talented teams within the gaming industry.
PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs.
At the same time, our industry has experienced continuing and fundamental change which affects how we all create, and play, games.
Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate.
Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources.
To take on these challenges, PlayStation Studios had to grow. We have brought brilliant and successful Studios into our family. We have invested in new technology and partnerships. We have recruited talent from across our industry and beyond.
But growth itself is not an ambition. PlayStation Studios is committed to continually discovering ways to work together; collaborating and combining our efforts to ensure that we are able to craft games that push the boundaries of play and deliver what you expect from us.
We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward.
I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members.
Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.
I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work.
PlayStation Studios will continue to be a creator-led organization driven by evolving our beloved franchises and bringing new gameplay experiences of the highest quality to our fans.
Thank you all for your continued support.
