Sony Interactive Entertainment announced on February 27, 2024, a plan to reduce its global workforce by about 8%—approximately 900 people. The announcement also proposed closing London Studio, but Sony said the studio closure and some UK cuts were subject to consultation, not final decisions on announcement day.
What Sony announced
SIE President and CEO Jim Ryan said the company planned to reduce headcount globally by about 8%, or about 900 people. Sony said employees across regions, including studio teams, would be affected. The figure was an approximate global target; Sony did not give a studio-by-studio breakdown.
The announcement was a plan, not confirmation that 900 individually identified employees had already been dismissed on February 27. Sony said affected employees in the United States would be notified that day, while conversations with potentially affected employees in other locations would begin according to local processes.
Which PlayStation teams Sony named
United States
Hermen Hulst, CEO of SIE’s Studio Business Group, named Insomniac Games and Naughty Dog, as well as technology, creative, and support teams in the United States, among the groups affected.
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United Kingdom and Europe
Sony proposed closing London Studio and proposed reductions at Firesprite and Guerrilla. It also described smaller reductions elsewhere in PlayStation Studios. The announcement did not provide individual studio headcounts, so the global estimate of about 900 should not be apportioned among these teams.
Was London Studio definitely closing?
Not on the day Sony made the announcement. Sony described the London Studio closure as a proposal and said collective consultation would take place before final decisions. The material available here does not establish whether or when that consultation concluded, whether the proposal was formally confirmed, or the studio’s exact closure date. The accurate description of the February 27 announcement is that Sony proposed the closure.
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Why did Sony say it was making cuts?
Sony attributed the restructuring to changes in the games industry and economic conditions, along with shifts in how games are developed, distributed, and launched. Ryan said the company needed to prepare for future business needs and focus on long-term sustainability while continuing to deliver the experiences players expect. Those are Sony’s stated reasons, not independently established causes.
Hulst framed the decision in terms of changing ways games are created and played. He said different approaches and resources are needed for narrative games, social and online experiences, and releases on PC and mobile. Sony also said it had reviewed projects at different development stages and that some would not proceed, but did not identify them; the announcement does not support attributing the cancellation of any particular rumored or unannounced game to these cuts.
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How the process and support varied
Sony said timing and procedures would differ by location because of local laws and regulations. Its announcement referred to consultation and local processes, including the proposed UK changes. Sony said people leaving would receive severance benefits; the Associated Press also reported severance benefits.
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Sources
- Sony Interactive Entertainment, “Difficult News About Our Workforce,” February 27, 2024 — global reduction plan, Sony’s stated rationale, local processes, and support.
- Sony Interactive Entertainment, “An Important Update from PlayStation Studios,” February 27, 2024 — named teams, studio proposals, and Sony’s studio-business framing.
- The Associated Press, “Sony to cut about 900 jobs in its PlayStation unit as layoffs in technology, gaming sector continue,” February 27, 2024 — contemporaneous report on the planned cuts and severance.
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