Sony Group Corp. has announced significant layoffs and the closure of a group in London within its video-game division. The company plans to lay off 900 employees worldwide, which accounts for about 8% of its workforce. This decision comes as a part of Sony’s effort to restructure and grow its business, as stated by departing Sony Interactive Entertainment President and CEO, Jim Ryan.
In a note to the staff, Ryan emphasized the necessity of making changes to foster the company’s development and growth. The layoffs will also impact renowned game makers such as Insomniac, Naughty Dog, and Guerrilla, which are among Sony’s most successful subsidiaries.
Sony’s shares experienced a sharp decline following the announcement of reduced projections for its PlayStation 5 console. This move highlights the challenges faced by the video-game industry, with more than 6,000 workers in the sector losing their jobs this year due to escalating budgets and a slowdown in post-pandemic spending, coupled with rising interest rates.
This decision by Sony reflects the broader challenges within the video-game industry and the need for companies to adapt to changing market conditions. The impact of these layoffs and the closure of the London division will have significant implications for Sony and the gaming community as a whole.
