Sony Group Corporation will lay off 900 people across its video game division worldwide, or about 8 per cent of its employees, and close a studio in London.

“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,” departing Sony Interactive Entertainment president and chief executive officer Jim Ryan wrote on Feb 27 in a note to staff, addressing the cuts. 

Sony said the layoffs will also impact game makers Insomniac (the studio behind Spider-Man), Naughty Dog (The Last of Us) and Guerrilla (Horizon), three of its most successful subsidiaries.

Sony shares plunged earlier in February on news that it was cutting projections for its PlayStation 5 console.

More than 6,000 video-game industry workers have lost their jobs in 2024 as budgets have skyrocketed, and game companies have faced a post-pandemic spending slowdown and rising interest rates. BLOOMBERG