Employment Law

Sony Layoffs: 900 jobs being cut, closing PlayStation London studio

A photo of a person using a keyboard and computer mouse. (Photo: ELLA DON / Unsplash)

Sony Interactive Entertainment (Sony) is eliminating approximately eight per cent of its total workforce, or 900 jobs, and shuttering its PlayStation London studio.

What’s happening at Sony?

In an email to staff on Feb. 27, CEO Jim Ryan said the leadership team has made the “incredibly difficult decision to restructure operations.”

“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,” the email reads.

“We had to step back, look at our business holistically…[the goal] is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.”

Several PlayStation studios, including Insomniac Games and Naughty Dog, are affected by the restructuring.

Ryan added that the company’s London studio will “close in its entirety.”

Sony’s Bungie laying off 8% of staff, part of wider restructuring
Microsoft eliminating 1,900 Activision Blizzard and Xbox roles
Unity Software cutting 265 jobs, shuttering offices

Impact on Canadian staff

It remains unclear if any Canadian employees at Sony will be let go.

According to the company’s LinkedIn page, it has more than 170 workers in the country.

Termination agreements for Sony Canada employees

In Canada, non-unionized employees at Sony are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

• Severance for provincially regulated employees
Rights to severance for video game sector staff
Severance packages during mass layoffs

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Major tech layoffs continue

The job cuts at Sony come amid a flurry of tech sector layoffs in 2024.

Big names, including Cisco, Mozilla, Instacart, Grammarly, Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, eBay, Wayfair, and YouTube, have also pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Boundless Learning laying off 15% across company: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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