Sony Layoffs Hit Game and Distribution Studios
Layoffs continue to strike Sony as the popular Japan-based electronics manufacturer slashed jobs at several video game and distribution studios this week.
An undisclosed number of employees at UK-based Evolution Studios, Guerrilla Cambridge, and SCE London Studio were let go Tuesday, with Sony promising that development of the highly-anticipated DriveClub racing game for the PlayStation 4 from Evolution would not affected by the layoffs.
"Regular reviews take place throughout SCE Worldwide Studios, ensuring that the resources that we have in such a competitive business can create and produce high quality, innovative and commercially viable projects," a Sony spokesperson told VideoGamer.
"As part of this process, we have reviewed and assessed all current projects and have decided to make some changes to some of our European Studios. As a result of this, there will be a focused restructure within London Studio, Guerrilla Cambridge Studio and Evolution Studio to ensure that the SCE WWS is in the best position to achieve their goals going forward."
Sony distribution operations in Dallas and Los Angeles are also being trimmed. According to Deadline, between 13 and 15 people in Dallas and a majority of the Los Angeles-based team of nine will lose their Sony jobs. The Dallas center will shut down June 2, while a small crew will continue to operate in Los Angeles. Other departments in Sony's entertainment arm were also recently hit, including its entire Interactive Division that has been responsible for Sony's digital marketing for 15 years.
Australian and New Zealand Sony employees were also recently put under the knife.
"In line with Sony Corporation's February 6 earnings announcement outlining global headcount reduction, together with the decision to cease ranging VAIO products in the ANZ markets as of June 2014, Sony has implemented some organizational changes resulting in a number of redundancies across A/NZ," an early March Sony statement reads.
The latest round of layoffs highlight Sony's aggressive efforts to restructure itself as a more financially viable company. The company announced in early February that it expected to lose 110 billion yen, or $1 billion, by the end of the fiscal year on March 31 and that it would be shedding 5,000 jobs worldwide by March 2015. Approximately 1,500 of the job losses will occur in Japan, and the rest globally.
Humans aren't the only casualties over at Sony, which is also ceasing the company's VAIO PC business. VAIO first appeared on the markets in 1996 and went on to become a popular alternative to other PC manufacturers such as HP, Compaq, and Dell, but has failed to be financially sufficient in recent years. As a result, the entire division is being bused out, with hopes in finding a reliable investor to pick up the scraps.