Sony Interactive Entertainment (SONY) revealed plans to lay off approximately 900 employees, constituting 8% of its global workforce, within its PlayStation division. The decision comes in the wake of a revised sales forecast for its flagship PlayStation 5 console, signaling lower-than-anticipated demand.
Jim Ryan, President and CEO of the unit, cited the necessity for organizational changes to sustain business growth and development. The impact will be felt across all regions, with PlayStation’s London studio slated for complete closure, alongside several other affected studios.
The Japanese gaming giant recently slashed its sales projection for the PS5, expecting to sell 21 million units by the fiscal year’s end, down from an initial forecast of nearly 25 million. This adjustment triggered a sharp decline in Sony’s stock value.
Analysts speculate that Sony might unveil a refreshed PS5 version to reinvigorate consumer interest. The move aligns with broader industry trends, as other tech companies like Microsoft, Cisco, and DocuSign have recently announced workforce reductions as part of strategic realignments.
