PlayStation Hit By Massive Layoffs Impacting 900 Developers

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Abdullah Waseem

At T4G, my task is to cover the latest news around the gaming globe ASAP and with the utmost precision. I adore all the games and respect all the devs behind the amazing games that we get all year. So, whether it’s a PC or a Console game, I got it all covered. 

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Amidst all the chaos of reducing the workforce to manage budgets, Sony is the latest to lay off its employees. While Microsoft cut 1,900 Xbox jobs last month, its biggest rival has not been left behind.

In an unfortunate update, Sony Interactive Entertainment has revealed that 900 employees from PlayStation Studios are being laid off.

Why it matters: The global turmoil in the industry doesn’t appear to be stopping anytime soon. PlayStation has announced a global reduction of headcount to about 8% of its overall employees.

Layoffs at PlayStation impact Naughty Dog, Insomniac Games, Gurellia, Firespite, SIE, and more

PlayStation says “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” pic.twitter.com/gynLtADDRK

— CharlieIntel (@charlieINTEL) February 27, 2024

Sony believes that the measure was necessary because the industry has changed quite a lot, and they need to prepare themselves for the future. What’s even sadder is that PlayStation London Studio is being totally shut down.

The London team, while not widely known, primarily worked on VR experiences. It was also working on a live-service title that was expected to arrive on day one on the PC platform.

In addition, Firesprite studio, the team behind Horizon Call of the Mountain VR and the next Twisted Metal, has faced significant reductions. The employees affected by this change will be made aware later today.

Meanwhile, other teams like Naughty Dog, Insomniac Games, Guerrilla Games, and more have also been impacted.

This year has not been the most kind for the gaming industry. Two weeks into January, around 2,700 professionals had already lost their jobs. This number went up to 6,000 in the same month.

Shutting down studios and laying off employees randomly is something nobody can support since it can result in entire families suffering. For now, we can only wish everyone impacted the best for the future.

However, in times like these, we can’t help but think of Nintendo’s former CEO Satoru Iwata, who once took a pay cut to protect Nintendo’s employees from layoffs. Perhaps the industry needs more executives like him today.

Nonetheless, PlayStation remains committed to making games. The gaming giant has again reiterated its strategy to bring more games to PC and create more memorable narratives.

Abdullah Waseem

News Reporter

Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.