Sony PlayStation is to cut 8% of its global workforce, including staff at its Firesprite Studio in Liverpool and its London studio in entirety.

The restructuring at its PlayStation division will affect around 900 people across all Sony Interactive Entertainment regions – Americas, EMEA, Japan, and APAC – the company said.

In December it revealed it had sold more than 50 million PlayStation 5 consoles globally in the three years since launch. However, this month it revised down its sales forecast for the PS5 by four million.

Firesprite was acquired by the videogame giant in 2021 and moved to new offices in Liverpool last year.

“The PlayStation community means everything to us, so I felt it was important to update you on a difficult day at our company,” wrote CEO Jim Ryan in a blog post.

“We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8% or about 900 people, subject to local law and consultation processes. Employees across the globe, including our studios, are impacted.

“These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead.”

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Rival Microsoft, behind the Xbox Series X console, recently announced plans to cut 1,900 staff at Xbox and its studio Activision Blizzard.


An email sent by Ryan to staff added further context to the cuts.

“Today, I am writing with sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organisation is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable,” he wrote.

“The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.  

“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community. 

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“The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.

“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.”

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