PlayStation has announced plans to lay off approximately 900 employees globally. This decision comes amidst what has been a challenging year for the video game sector, with various industry giants experiencing significant downsizing.

The layoffs will affect PlayStation Studios across all regions of Sony Interactive Entertainment (SIE), with the London-based studio slated for closure. This move reflects a broader trend within the gaming industry, with other major players such as Riot Games and Microsoft-Blizzard also grappling with workforce reductions earlier in the year.

Jim Ryan, President and CEO of Sony Interactive Entertainment, described the decision as "extremely hard," attributing it to the ongoing transformation within the gaming sector. He emphasized the importance of positioning the company to tackle future challenges while maintaining a commitment to delivering exceptional gaming experiences.

Despite the sizable reduction in workforce—equivalent to 8 percent of the company's employees globally—Ryan reassured employees that these "challenging times" do not reflect any weakness in the company, its brand, or the gaming industry as a whole. Instead, he framed the layoffs as a strategic response to evolving economic conditions and shifts in the gaming landscape.

In an internal communication to employees, Ryan outlined the rationale behind the decision, highlighting the company's focus on long-term sustainability and enhancing gaming experiences for the community. He stressed the need for restructuring to align with changes in the industry's development, distribution, and product launch dynamics.

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Recognizing the impact of such news on affected employees, the internal communication also assured support in the form of severance benefits for those leaving the company. This gesture underscores PlayStation's commitment to managing the transition with empathy and care.