Technology
Tuesday, February 27th, 2024 4:11 pm EDT
Key Points
- Sony Interactive Entertainment is laying off about 900 employees in its PlayStation unit, which constitutes 8% of its global workforce, as part of efforts to grow the business and develop the company.
- The decision follows careful consideration and leadership discussions over several months, with Sony’s President and CEO Jim Ryan emphasizing that changes are necessary. The layoffs will affect employees across all regions, with PlayStation’s London studio closing entirely and other studios also impacted.
- The announcement comes after Sony revised down its sales forecast for the PlayStation 5 console on Feb. 14 due to lower demand, expecting to sell 21 million units for the fiscal year ending in March, down from a previous forecast of nearly 25 million consoles. This news led to a sharp decline in Sony’s shares.
Sony Interactive Entertainment announced plans to lay off approximately 900 employees, amounting to 8% of its global workforce within the PlayStation unit, as part of a strategic move to address changes needed for business growth and development. The decision, communicated by the unit’s President and CEO Jim Ryan, follows extensive leadership discussions over several months and will affect employees across all regions, with the closure of PlayStation’s London studio and several other studios facing impacts. This move comes after Sony reduced its sales forecast for the PlayStation 5 console on February 14 due to lower demand, revising down the expected sales from nearly 25 million to 21 million units for the fiscal year ending in March. The announcement led to a sharp decline in Sony’s shares. Analysts had speculated about Sony’s potential release of a refreshed version of the PlayStation 5 to stimulate interest in the console. Sony’s layoffs add to a series of similar actions in the tech industry, including Microsoft’s 9% reduction in its gaming unit following its acquisition of Activision Blizzard and recent layoffs announced by Cisco and DocuSign. Despite this announcement, Sony’s shares remained relatively unchanged in trading on Tuesday morning.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/27/sony-to-lay-off-900-workers-from-playstation-division-or-8percent-of-units-global-workforce.html
