Today, in a blog post, Sony Interactive Entertainment has announced its plan to commence a reduction of our overall headcount globally by about 8% or about 900 people. This impacts employees across the globe, including those at PlayStation studios. “These are incredibly talented people who have been part of our success, and we are very grateful for their contributions,” Jim Ryan, President & CEO, Sony Interactive Entertainment said. “However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead. 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.” In addition, with the layoffs, it has been revealed that Sony canceled a Twisted Metal live-service game that was in development at UK-based studio Firesprite, which is one of the studios affected by today’s news.
Herman Hulst, Head of PlayStation Studios revealed that Insomniac Games, Naughty Dog, and the Technology, Creative, and Support teams are the U.S. studios that were impacted by the layoffs. In the UK and Europe, Guerilla Games and Firesprite were affected. The big studio affected was London Studio which will close in its entirety.
There have also been smaller reductions in other teams across PlayStation Studios.
The Twisted Metal live-service game wasn’t the only game canceled. Hulst said, “We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward.”
“The proposed changes mean that we will enter a period of collective consultation before any final decisions are taken,” Ryan said. “All employees who are part of the collective consultation will be made aware of the next steps today.
“For those who will be leaving SIE: You are leaving this company with our deepest respect and appreciation for all your efforts during your tenure.
“For those who will be staying at SIE: We will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come.
“This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits. While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry. Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.
“Thank you for your understanding during this difficult period. Please be kind to yourselves and to each other.”
“I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members,” Hulst said.
“Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.
I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work.
PlayStation Studios will continue to be a creator-led organization driven by evolving our beloved franchises and bringing new gameplay experiences of the highest quality to our fans.
Thank you all for your continued support. “