Sony has begun lay-offs process that sources said are strategic rather than a cost-driven exercise.
Redundances are underway at the film, television and corporate divisions as CEO Ravi Ahuja targets growth areas and continues to wind down “non-core and low growth businesses” like Pixomondo, which it was announced last month will close as the focus shifts to Vancouver-based Sony Pictures Imageworks.
The lay-offs are expected to impact several hundred jobs around the world. Ahuja is focusing on and expected to add resources to franchise strategy brand extension including the game shows group, anime, experiences, next-gen content, a greater focus on Sony’s YouTube capabilities, and Sony Group ecosystem connectivity including game adaptations.
It is understood top brass feel confident in Sony’s diversified businesses like anime, and its independence from a steamer (Sony Pictures Entertainment has a global pay-1 deal with Netflix.
Game Show Network is being consolidated into Game Show Group under Game Shows president Suzanne Prete, and Sony Pictures Television is folding into TV Studios under TV Studios president Katherine Pope.
Additional releases include The Breadwinner, from comedian Nate Bargatze, who will make his feature film debut, Resident Evil, directed by Zach Cregger, arriving in September (the franchise has earned $1.2B worldwide), Aaron Sorkin’s The Social Reckoning on October 9, and Jumanji 3 on December 25.
Ahuja’s internal memo appears below.
Good morning,
Today you’ll hear about changes that are starting to roll out across the company, and I’d like to share some context on how we are refining our organization for the next phase of growth.
Over the past year, we have sharpened our strategy and clarified where we believe the greatest opportunities exist. As we lean into those priorities, we need to operate with greater focus, speed, and alignment to strengthen our differentiated capabilities. To support our growth, we are aligning our organization with where the business is going — not where it has been. That requires changes to how we are structured and where we invest.
With that, we are reducing roles in certain areas while increasing focus and investment in others that are most critical to our future. This means that some of our colleagues will be leaving the company. These are difficult decisions. They impact talented people who have contributed meaningfully to our work and culture. We are grateful for their contributions, and our P&O teams are committed to supporting them through this transition.
I know this kind of change can feel uncertain and raise questions. Over the coming months, business leaders will share more detail as plans and priorities take shape. I will also host another Check-In later this month to talk more about the path ahead and answer your questions.
While the industry around us continues to evolve, we are uniquely well positioned for this moment. The demonstrated value of our independent television and film studios offers us the flexibility to move with the market — to partner broadly, match projects with the right platforms, and support our creative partners in bringing great stories to life. Furthermore, we are underpinned by strong franchises and brands. And our connectivity to the broader Sony Group ecosystem centers us for accelerated growth in anime and game IP adaptations.
This organizational shift is about reorienting to thrive in a changing industry. By aligning our structure and resources more closely with our strategic priorities, we will move forward with greater clarity and momentum and be better equipped for innovation and resilience.
Thank you for your continued commitment and for supporting one another.
Ravi
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