Former Sony executive has harsh words for laid-off gaming employees

After thousands of gaming industry workers were hit with mass layoffs over the past year and a half, some corporations that made job cuts have come under fire on social media for laying off employees despite sales and growing profits.

During a recent interview on the “My Perfect Console with Simon Parkin” podcast, former Sony (SNEJF) Computer Entertainment Europe President Chris Deering shared some sharp words for those who criticize the widespread layoffs in the gaming industry.

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“I don’t think it’s fair to say the resulting layoffs were greed,” Deering said. “I always tried to minimize the rate at which I added personally because I always knew there would be a cycle and I didn’t want to end up having the same problems that Sony had in Electronics.”

He claimed that recent layoffs at London-based Sony Interactive Entertainment, which saw around 900 people lose their jobs in the gaming sector in February, were down to weak sales. When Sony announced the layoffs in a press release in February, it said the change was the result of a “rapidly changing industry.”

“If the money isn’t coming from consumers for the last game, it’s going to be hard to justify spending money on the next game,” Deering said.

A shopper with a Sony Playstation 5 at a Best Buy store on Black Friday in San Francisco, California, U.S., Friday, Nov. 25, 2022.

Bloomberg/Getty Images

However, Sony’s earnings report for the first three months of 2024 showed that its gaming and network services sector posted about 17% year-over-year sales growth and about 16% growth in operating income.

Deering also stated in the interview that having a skill in game development does not mean a lifetime of “poverty or limitation” and that those who have recently been laid off should “figure out how to get over it”.

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“Drive an Uber or whatever, go find a cheap place to live and go to the beach for a year,” Deering said.

He also said he was “optimistic” about the future of those in the industry who were dismissed from their jobs and that their severance packages should help cushion the blow.

“I guess people got paid some sort of decent severance package and by the time it’s over … Well, you know, that’s life,” Deering said.

The Sony executive’s comments are receiving backlash

In response to Deering’s recent comments, users of the social media platform X blasted the former Sony executive for being “deaf.”

what is this Oh, just the sound of another big bang that’s deafening. Going to the beach one year? Yes, because people don’t have those things called bills to pay.

— Paula B (@Dunedineediting) September 10, 2024

“It’s not the result of corporate greed,” coming from a corpo…
They should try living off the income of Uber drivers and see how it goes

— Frost (@Frost0791) September 10, 2024

Explain to me why corporate executives are never fired or even asked to take a pay cut (like Nintendo did under Iwata). How is it that executives who hire in these irresponsible ways never see any consequences? Why are they never asked to cut back and go to the beach?

— Miles Weaver (@mrmilesweaver) September 10, 2024

Deering’s comments come after an estimated 11,250 gaming industry workers worldwide could lose their jobs to layoffs in 2023, according to data from Statista. Layoffs continue to accelerate, as 11,000 gambling workers were laid off in the first six months of this year.

More work:

• Sony’s Bungie came under fire for layoffs after CEO spent millions
• Dell makes a tough move, reinforcing fears about the future of work
• Former Google CEO responds to outrage over remote work comments

The layoffs come at a time when U.S. gaming has been named one of the “fastest growing large sectors” in the entertainment and media industry by professional services firm Pwc. The company predicts that US gaming revenue will exceed $300 billion in 2028, which is more than double what it generated in 2019.

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