This Massive Entertainment Company Is Now Laying Off 900

February 27, 2024

This massive entertainment company is now laying off 900 workers, or 8% of the units global employees, sources report.

Sony on Tuesday said it will lay off about 900 employees in its PlayStation unit, or 8% of its global workforce, becoming the latest technology company to announce headcount trims, reports CNBC.

“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 unit’s President and CEO Jim Ryan said in an email to employees, released publicly by the company.

He added that employees across all of the company’s regions will be affected by the layoffs.

PlayStation’s London studio will close in its entirety, with several other studios due to be affected.

The Japanese gaming giant cut its sales forecast for its flagship PlayStation 5 console on February 14 after it warned of lower demand.

Sony at the time said it expects to sell 21 million units of the PlayStation 5 in the fiscal year ending in March, trimmed from a previous forecast of near 25 million consoles.

The company’s shares plunged sharply after the forecast cut announcement.

Analysts had anticipated that Sony could move to release a refreshed version of the PlayStation 5 this year, seeking to boost interest in the game console.

Tuesday’s announcement from Sony is the latest in a string of layoffs affecting the tech industry.

In January, Microsoft laid off about 9% of its gaming unit after its acquisition of Activision Blizzard.

Earlier this month, Cisco and DocuSign both announced plans to cut their workforces as part of restructuring plans.

For more news and updates like this, opt-in for push notifications.

Also Read: This Massive Restaurant Is Now Closing 41 Locations

Other Economy News Today

A big appliance company now files an unexpected bankruptcy after racking up a whopping $832 million in debt, sources report.

Appliance component manufacturer Robertshaw U.S. Holdings filed for Chapter 11 bankruptcy protection on Thursday, seeking to cut $670 million in debt and resolve litigation between its lenders, reports Reuters.

Robertshaw manufactures more than 10,000 sophisticated controls for commercial and home appliances, per its website.

Primary applications include controls for clothes washers and dryers, dishwashers, refrigerators, electric and gas cooking, ice makers, fluid dispensing, storage water heaters, gas valves for space/central heating, and automotive/off road temperature and fluid controls.

The company, owned by private equity firm One Rock Capital Partners, entered bankruptcy with a restructuring agreement supported by a majority of its lenders, according to documents filed in Houston, Texas bankruptcy court.

The company will also explore a bankruptcy sale as an alternative to its debt restructuring.

“Robertshaw may not be a household name, but its products appear in almost every household,” attorney George Klidonas said at a Thursday court hearing in Houston.

The company blames the pandemic for its struggles.

Robertshaw said it was unable to sustain its high debt level in the face of rising interest rates and lingering supply chain challenges that arose during the COVID-19 pandemic.

The Itasca, Illinois-based company said it has $832 million in debt.

In the last nine months of 2023, Robertshaw generated a gross profit of $58.8 million.

The company’s efforts to address its debt outside of bankruptcy spurred litigation between its lenders in 2023.

Robertshaw will seek to resolve that dispute in bankruptcy, either through mediation or litigation in bankruptcy court, according to court documents.

The company has lined up a $56 million bankruptcy loan funded by its majority lender group, according to court filings, and will seek bankruptcy court approval for that loan at a later date.

For more news and updates like this, opt-in for push notifications.

Also Read: A US Company Now Declares An Unexpected Bankruptcy

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.

More Market News 📰