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Layoffs across the video game industry are unfortunately showing no signs of slowing down. Sony confirmed Tuesday that it's letting go of about 900 PlayStation employees, or 8% of the division's global headcount.
This reportedly includes employees at The Last of Us game developer Naughty Dog, Spider-Man game maker Insomniac Games, and Guerilla, which all operate under Sony's PlayStation banner. Sony-owned UK studio Firesprite will also be among those affected, the company said in its announcement from Sony Interactive President and CEO Jim Ryan.
PlayStation employees around the world will be impacted by the layoffs, and the company plans to close its London PlayStation studio entirely.
"The industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead," Ryan wrote. "We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming."
It's unclear if the rise of generative AI tools played a role in Sony's decision to cut staff as it seeks to move gaming tech forward. Generative AI in gaming has become a massive source of controversy in the industry, as new tools like Microsoft's planned AI game development toolkit have sparked concern among game developers and in-game talent alike.
Ryan also cited an "evolving economic landscape" as a driving force behind the "inevitable" cuts, and says that Sony is changing the way it's developing and launching games. Ryan didn't offer specifics, though. The executive says laid-off employees will receive "support," including severance, and impacted employees in Japan will get access to a "next career support program."
Sony's PlayStation layoffs come less than two weeks after the game publisher confirmed its studios won't be releasing any titles from its major franchises this year.
The gaming industry has seen an onslaught of layoffs across the board in the past year as hype around generative AI swirls. So far, 2024 isn't looking much better. Activision Blizzard, Epic Games, Unity, and Riot Games have all laid off staff this year alone.