PlayStation's Sony to cut 900 jobs amid brutal year for video game industry layoffs

PlayStation maker Sony Interactive Entertainment will lay off 900 people, President and CEO Jim Ryan said Tuesday.

The layoffs reduce Sony Interactive Entertainment’s workforce by about 8%, he said in a news release.

"The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success," Ryan wrote in an email to staff members Tuesday.  

Ryan wrote that the company decided to cut the number of employees as it restructures operations because of the “evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry.” The timeline of the layoffs will vary by location, according to the email.

In addition to the layoffs, PlayStation’s London Studio will shutter entirely.

Ryan called the staff members who are being let go "incredibly talented people who have been part of our success," adding that the company is "very grateful for their contributions."

"However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead," he wrote. 

PlayStation is just the latest company in the video game sector to announce layoffs.

On Monday, video game developer Supermassive Games, which made the horror games "Until Dawn" and "The Quarry," wrote in a statement that it planned to lay off some of its workforce.

Last month, Microsoft Gaming, one of PlayStation's major competitors, announced it was reducing its workforce by about 1,900 employees.

The round of layoffs come after 14 brutal months in the video game industry. Thousands of jobs were cut in the video game sector last year, with industry estimates suggesting 6,500 video game workers were let go. Unofficial trackers suggest the number is even higher.

Some of the layoffs are due to video game companies’ adjusting to a post-pandemic world. The industry thrived as people were stuck at home and turned to video games to stay entertained. In the years since then, as people were able to go back out into the world, the industry has had to make cuts. 

In an email, a spokesperson for Sony Interactive Entertainment said the company’s goal is to “continue to meet the expectations of our players and partners and deliver the best gaming experiences.”

“Through this, we aim to become a stronger and more resilient organization,” the spokesperson said.