PlayStation’s Technology, Creative, and Support teams are also affected by these layoffs, according to Hulst. He writes, “These are in addition to some smaller reductions in other teams across PlayStation Studios.” These layoffs will result in an 8 percent reduction of staff, or around 900 people losing their jobs.
“Our goal at PlayStation Studios has always been to make the best games for PlayStation fans, and our global community of studios represent some of the most creative and talented teams within the gaming industry,” Hulst writes in the statement. “PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs. At the same time, our industry has experienced continuing and fundamental change which affects how we all create, and play, games.
“Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate. Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources. To take on these challenges, PlayStation Studios had to grow.”
He continues, stating that growth itself is not an ambition, likely alluding to overgrowth within PlayStation Studios as a reason for today’s layoffs.
Hulst says PlayStation has looked at its studios and portfolio to evaluate projects in various stages of development and has decided that some of these projects will not move forward.
“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 writes. “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 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.”
“Subject: Important Update Regarding Organizational Restructuring
Team,
It is important to provide you with updates about the business as often as possible. 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 organization is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable. 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. 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.
I want to be as transparent as possible with you, our partners, and our community about what this means:
I know that receiving this news will be hard and unsettling and you are wondering what this means for you. Timelines and procedures for how we approach this will vary based on your location due to local laws and regulations.
The proposed changes mean that we will enter a period of collective consultation before any final decisions are taken. 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.”
Last year, more than 10,000 people in the games industry or game-adjacent industries were laid off.