Sony has been exciting players with snippets of news about the upcoming PlayStation 5. However, Sony is currently undergoing major structural changes and this has been bad news for its employees. Sony has let go dozens of employees in its SIE Europe branch in the wake of the PlayStation 5's announcement. This has come as a surprise to many as Sony has seen solid growth in its market value over the last 5 years.
Sony's PlayStation has been the most successful brand of console ever. There had been over 370 million PlayStation's from various generations sold in 2015 and the success of the PlayStation 4 has surely led to an even more impressive figure four years on. However, the fact is that companies are always trying to increase profit margins and this leads to restructuring the make-up of the company. In this case, Sony is likely pursuing a new strategy that financially justifies letting fo of staff.
Some employees have been encouraged to apply for new roles within Sony. Yet, this doesn't always guarantee pay consistency. Recently, the gaming division of Sony went through a major change as new president Jim Ryan was announced and it is likely that these changes are all part of a much greater scheme across the company. Either way, many will be disappointed in the news as outlets like Geekstore celebrate Playstation's 25th birthday.
The PlayStation 5 has an official release window and many will still line up for what is sure to be an incredible console. It is undoubtedly disappointing that Sony is culling its teams and not actively growing. The departments who have lost staff are marketing, PR, and US creative services. It isn't unusual for staff to be let go and for key players to move positions. Yet, the news coming alongside the exciting news about the next generation of consoles will undoubtedly dampen the initial jubilation surrounding Sony's gaming divisions.
Sony wasn't the only company to have people move out of the company. Xbox's Mike Ybarra recently left the company and his absence will certainly be felt. Many will be more concerned with the PlayStation 5's CPU cores and the possibilities that stem from that than the companies changing the structure. Although lay-offs of this number don't spell danger for Sony, the company is definitely proactively addressing its internal issues.