It seems that just because you’ve thrashed Xbox in this round of the console wars, that doesn’t mean a job for life and pay rises all round. Sony Interactive Entertainment have today announced the loss of 900 staff, or around 8% of the company’s global headcount.

The move comes hot on the heels of the newly swollen Microsoft doing likewise with the loss of 1900 staff weeks earlier.

“Employees across the globe, including our studios, are impacted,” according to the official statement which - at the time of writing - names some UK properties affected but stops short of detailing the impact globally, instead offering, “There will be impact for employees across all SIE regions – Americas, EMEA, Japan, and APAC,” and “several PlayStation Studios are affected.”

The confirmed UK casualties are as follows: “In the UK, it is proposed: That PlayStation Studios’ London Studio will close in its entirety; That there will be reductions in Firesprite studio; And that there will be reductions in various functions across SIE in the UK.” reads a statement from Jim Ryan, president & CEO of Sony Interactive Entertainment.

Sony's London Studio played a major part in building lifestyle brands for PlayStation such as SingStar and EyeToy. The studio also created The Getaway, the 3D action game showcase for PlayStation 2 and more recently produced PlayStation VR's flagship titles including VR Worlds and shooter Blood & Truth.

It's thought that their ongoing title, "an [unnamed] online multiplayer game set in a modern day, fantasy London" will now not see the light of day.

Likewise Firesprite's biggest work was also on PlayStation VR, the highest profile of which being PlayStation VR2 launch title Horizon VR: Call of the Mountain.

Global cutbacks

Elsewhere in the global PlayStation family, “For those of you in the US, all impacted employees will be notified today.” The exact nature of these global cuts across all SIE regions are - at the time of writing - yet to be announced or evidenced.

“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,” reads the official statement. “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.”

Getting ready for the next war

It’s clear that Sony is predicting a very different landscape for the next round of the PlayStation story and given the lead-in such plans require, are making the changes now in order to be better streamlined for strategies and launches in the future.

Sony have been steadily working towards a greater lean into cloud gaming and it’s highly likely that software services and subscriptions and a presence on other non-Sony devices such as mobile and smart TVs will play a greater role in the company’s ongoing success - more so that the successive rounds of expensive, custom-made PlayStation branded hardware upon which the company's success currently depends.

The full transcript of Jim Ryan’s email to the company reads as follows:

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:
We envision reducing our headcount by about 900 people, or about 8% of our current workforce
There will be impact for employees across all SIE regions – Americas, EMEA, Japan, and APAC.

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.

• For those of you in the US, all impacted employees will be notified today.

• In the UK, it is proposed:

• That PlayStation Studios’ London Studio will close in its entirety;
• That there will be reductions in Firesprite studio;
• And that there will be reductions in various functions across SIE in the UK.

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.

• In Japan, we will implement a next career support program. Details will be communicated separately.
• In other countries, we will begin conversations with those who are potentially at risk or impacted as a result of this proposed course of action.

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.

Jim