Overview of Recent Layoffs at Sony’s PlayStation Division
- Recent job reductions have impacted developers within PlayStation’s Visual Arts Group Support team.
- PlayStation Studio Malaysia, a support team formed in 2020, has also seen workforce cuts.
- These layoffs may be linked to the cancellation of upcoming live-service games from Bend Studio and Bluepoint Games.
In a surprising move, Sony has implemented substantial layoffs within its PlayStation division, targeting its Visual Arts Group and PlayStation Studio Malaysia—the latter being a relatively new contributor to the gaming giant’s development efforts since its inception in 2020. This downsizing appears to orchestrate a significant reorganization among various support teams that bolster PlayStation’s primary game studios.
Earlier in February 2024, Sony had already announced a drastic reduction of around 900 employees from PlayStation, equating to roughly 8% of its global workforce. Following these initial cuts, the company closed its mobile arm, Neon Koi, alongside Firewalk Studios, and announced the cancellation of two anticipated live-service titles developed by Bend Studio and Bluepoint Games in January 2025. While the company reassured that these studios would not face closure, the cancellation of projects seems to have triggered extensive layoffs among support teams.
Abby LeMaster, a former project manager for PlayStation Visual Arts, took to LinkedIn to express her dismay, indicating that the job cuts affected numerous highly skilled developers, some of whom had been with the company for decades. She described the impact as “hitting hard, ”emphasizing the challenge in replacing such specialized talent. A subsequent report from Kotaku corroborated LeMaster’s observations, suggesting that the layoffs were pervasive and linked to the canceled projects, although this action may reflect a wider effort to shrink the workforce.
Impact on PlayStation Support Teams
The situation is further compounded by the recent layoffs at PlayStation’s Malaysia Studio. Senior project manager Johann Mahfoor confirmed his job loss via LinkedIn, describing it as part of a “mass workforce reduction”that affected not only Malaysia but also other global teams within PlayStation. There were speculations that Studio Malaysia was set to contribute to Bluepoint’s now-defunct project, possibly accounting for the layoffs within this support group.
The gaming industry as a whole faced a challenging 2024, witnessing over 14, 500 job losses across multiple studios and game publishers worldwide. When combined with figures from 2022 and 2023, the total climbs to above 33, 500 job cuts within three years. This wave of layoffs is primarily attributed to a recalibration of financial strategies following the explosive growth seen during the pandemic, which led many organizations to overestimate sustained consumer spending. Unfortunately, projections indicate that this trend may persist into 2025, as major players like Warner Bros. Games have recently shuttered three of their studios.
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