All regions and several studios, including Naughty Dog and Insomniac, were affected
PlayStation cancels live service games, closes studio, layoffs for 900 employees
Sony Interactive Entertainment is laying off about 900 employees, or 8% of the company, outgoing president and CEO Jim Ryan said in a press release published Tuesday. Employees from all regions — North America; Europe, Middle East and Africa; Japanese; and Asia-Pacific — are affected by the cuts, including several PlayStation development studios. London Studio, the in-house team that created the SingStar franchise, will be closed entirely, Ryan said. It was also revealed that Naughty Dog, Insomniac Games and Guerrilla Games will face layoffs.
"These are incredibly talented people who have been part of our success, and we are very grateful for their contributions," Ryan said in the press release. "However, the industry has changed enormously, and we need to future-proof ourselves to prepare the business for what lies ahead. We need to live up to the expectations of developers and players and continue to drive future technology in gaming, so we took a step back to ensure we are committed to continuing to provide the community with the best gaming experiences.”
Affected US employees will be notified on Tuesday, Ryan said in an email to staff posted on the Sony Interactive Entertainment website. UK employment law requires companies to open a consultation period before making redundancies final; the closure of the London studio, layoffs at Firesprite Studio and other redundancies are "proposed" for now. Japanese employees will have access to a "next career support program," Ryan said.
