Another Layoff Wave Hits PlayStation, Affecting a Software Development Team
PlayStation has undergone yet another round of layoffs—this time targeting a software development team rather than a game studio. The news emerged from Oscar Diaz, who served as a Senior Design Technologist at PlayStation since October 2020, developing tools and processes to support the company’s UX group. Diaz, one of the affected employees, revealed the layoffs in a Mastodon post, stating:
“Most of my team was just laid off from PlayStation. It was a dream to get to work with Sony on the platform I’d grown up playing since the PS1 and contribute to the PS5, Portal, PSVR2, PS App, and future consoles. If you know anyone who needs an engineer experienced with native console UI, feel free to reach out.”
A Broader Context: Multiple PlayStation Layoffs
Over the past year, Sony’s PlayStation division has implemented various staffing cuts, impacting both first-party studios and subsidiary teams:
Sony Bend faced layoffs after the cancelation of an unannounced live-service project, reportedly axed alongside a God of War live-service title at Bluepoint.
Earlier, Firewalk (developer of the live-service Concord) and Neon Koi (tasked with mobile adaptations of PlayStation IPs) were both shuttered.
In 2024, PlayStation reduced its global workforce by roughly 8%, closing down its London studio and laying off employees at major teams like Guerrilla Games, Naughty Dog, and Insomniac Games.
Bungie, acquired by Sony, laid off 220 employees in July 2024.
Industry-Wide Trend
Layoffs have not been limited to Sony. The year 2024 was broadly characterized by widespread downsizing across game studios:
Reflector Entertainment was forced to let go of employees when Unknown 9: Awakening underperformed.
Phoenix Labs (known for Dauntless and Fae Farm) also scaled back significantly, losing most of its staff.
BioWare reduced its roster to under a hundred employees following the commercial disappointment of Dragon Age: The Veilguard.
Ubisoft cut 185 employees and shut down its Leamington studio.
With 2025 showing few signs of reversing that trend, the global gaming sector continues to deal with consolidation and financial challenges. For Diaz and others in his team, the shift ends a long-standing dream of working on major PlayStation products—yet highlights the volatility even in successful and high-profile technology ventures.
What’s your take on the escalating layoffs within the gaming industry? Do you believe large publishers will stabilize once next-gen development ramps up, or is restructuring now an inevitable part of gaming’s ongoing business model? Share your perspective below!
