The current economic scenario has led to Sony to make drastic decisions regarding its corporate structure.
The Japanese multinational confirmed that it will lay off around 900 employees, representing approximately 8% of its workforce around the world.
The company said the changes are necessary to ensure the long-term sustainable expansion of its business.
Reduction in the PlayStation division
Sony closes studio and promotes mass layoffs in the PlayStation department – Image: Reproduction
The cuts will primarily affect the PlayStation department, with layoffs expected in the Americas, Japan, Europe, the Middle East, Africa and Asia-Pacific.
Another decision taken was the closure of a studio in London, the capital of the United Kingdom. The unit was responsible for developing games for the PlayStation VR.
It is worth mentioning that the Firesprite studio will be impacted as well. The company, which was already developing the game ‘Horizon Call of the Mountain’, is part of the group.
Sony stressed that “changes need to be made to continue to expand the business and develop the company” and promised to remain focused on delivering “the best possible experiences for the community”.
Lower-than-expected PlayStation 5 performance
The layoffs were announced shortly after Sony reported that the PS5 did not reach the sales target set by the company.
The news caused Sony’s share price to fall significantly, resulting in losses of around 10 billion dollars, the equivalent of approximately 50 billion reais.
The staff reductions follow a trend that has impacted the technology and gaming industries in 2024.
Recently, Microsoft confirmed the layoff of 1,900 employees from Activision Blizzard and Xbox. Unity retired 25% of its workforce and Discord terminated the contract of 17% of its employees.
The Japanese developer now hopes that the measures adopted can contribute to its recovery.
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