PlayStation is reducing its overall headcount globally by about 8% (about 900 people) as part of a new and “extremely difficult” workforce reduction initiative, Jim Ryan, President & CEO of Sony Interactive Entertainment, announced today. Some of the studios that are impacted include Insomniac Games, Naughty Dog, and Guerrilla Games; PlayStation Studios’ London Studio is also closing.
US-based studios and groups impacted by a reduction in workforce:
- Insomniac Games
- Naughty Dog
- Other technology, Creative, and Support teams
- Smaller reductions in other teams across PlayStation Studios
Plans for UK and European studios:
- PlayStation Studios’ London Studio will close in its entirety
- Reductions in Guerrilla and Firesprite
- Reductions in various functions across SIE in the UK
Ryan on why this needed to happen:
…changes need to be made to continue to grow the business and develop 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 experiences possible for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.
Hermen Hulst, Head of PlayStation Studios, added:
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.
A live-service Twisted Metal game has reportedly been canceled as a result:
NEW: As part of today's mass layoff, Sony has canceled a Twisted Metal live-service game that was in development at UK-based studio Firesprite, Bloomberg has learned.
— Jason Schreier (@jasonschreier) February 27, 2024
Firesprite will also lay off an unspecified number of people. https://t.co/pvCDsS7yxe
Ryan also mentioned:
For those who will be leaving SIE: You are leaving this company with our deepest respect and appreciation for all your efforts during your tenure.