Sony has announced the layoff of about 900 employees, constituting about 8% of its global workforce, as part of a restructuring plan in its PlayStation division. This decision follows recent changes in the industry and a shift in demand for gaming consoles, according to a recent report by The Guardian.
Jim Ryan, CEO of Sony Interactive Entertainment, explained the rationale behind the job cuts in a recent blog post, stating: "We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community."
The layoffs will be spread across the Americas, Japan, Europe, the Middle East, Africa, and the Asia Pacific region. Notably, the PlayStation Studio in London is set to be completely closed, and reductions will also occur at the Firesprite Studio, a game development studio owned by PlayStation. Various functions across Sony Interactive Entertainment in the UK will also see workforce reductions, with the company promising to provide severance benefits to the affected employees.
The move comes just two weeks after Sony revised its sales forecast for the PlayStation 5, citing a decline in demand. The company now expects to sell 21 million units of the console in its fiscal year, down from the initial projection of 25 million units.
Industry analysts speculate that the restructuring may be a response to the rapidly evolving gaming landscape and increased competition within the sector. The job cuts could be part of a strategic effort to realign the company and ensure it remains responsive to the changing demands of the market, suggests the report by The Guardian.
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