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Ex-Sony boss offers blunt advice to laid-off workers: Go to beach or drive Uber

News • 16th Sep 2024 • 3 Min Read

Ex-Sony boss offers blunt advice to laid-off workers: Go to beach or drive Uber

Leadership#HRTech#Layoffs#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
651 Reads
Drawing comparisons between the current wave of layoffs and the global pandemic, Deering downplayed the notion that corporate greed is responsible for the widespread cuts and instead urged workers to weather the storm by temporarily stepping away from the industry.

Chris Deering, former president of Sony Computer Entertainment Europe and a veteran of the gaming industry, recently offered some unexpected and controversial advice to the thousands of tech workers who have been laid off in the past couple of years. 

His suggestion? Take a year off to relax at the beach or join the gig economy, driving for companies like Uber, while waiting for the tech industry to bounce back.

Deering, who led Sony’s PlayStation business in Europe from 1995 to 2005, made these comments during an episode of the My Perfect Console podcast. Drawing comparisons between the current wave of layoffs and the global pandemic, Deering downplayed the notion that corporate greed is responsible for the widespread cuts and instead urged workers to weather the storm by temporarily stepping away from the industry.

"You’re going to have to take a few hits, figure out how to get through it, drive an Uber or whatever,” Deering said. “Find a cheap place to live and go to the beach for a year.”

The video game industry, like much of the tech sector, has faced significant layoffs in recent years. Since 2023, around 645,000 tech workers have been let go globally, and over 20,000 of those layoffs have come from the gaming industry alone. In 2023, major companies like Sony, Microsoft, and Unity downsized their workforces, with Sony laying off 900 PlayStation employees and closing its London Studio.

By May 2024, the gaming industry had already surpassed the total number of layoffs seen in 2023, with more than 10,000 workers losing their jobs. Microsoft cut nearly 4,000 jobs earlier this year, and Unity laid off workers as it shifted focus toward its core business.

Despite these substantial cuts, Deering argued that layoffs in the gaming industry aren’t purely driven by corporate greed. “I don’t think it’s fair to say that the resulting layoffs have been greed,” he said. Instead, he attributed the job cuts to the cyclical nature of the industry. Deering explained that while gaming companies expand during periods of growth, they are forced to contract when revenue dips, especially when the last major game release doesn’t perform as expected.

“If the money isn’t coming in from the consumers on the last game, it’s going to be hard to justify spending the money for the next game,” Deering explained, adding that he had always been cautious about hiring too quickly during his time at Sony.

Deering’s advice for laid-off workers, however, has sparked debate. While he acknowledged the hardship faced by those who have recently lost their jobs, he suggested that they take a step back from the tech sector, if only for a short while. His message to those impacted was simple: find temporary work in the gig economy or take a break.

“Go to the beach for a year,” he said, seemingly trivializing the financial and emotional toll of losing a job in an industry where competition is fierce and opportunities scarce.

Despite his somewhat unconventional advice, Deering remains optimistic about the future of the gaming industry and the prospects for those currently out of work. As someone who has witnessed multiple cycles of growth and decline during his career, Deering expressed confidence that the industry would recover sooner than expected.

“These things do recover sometimes a lot faster than you might think when all is very precarious,” he said. While acknowledging the painful decisions managers face during downturns, Deering emphasised that having experience in the gaming sector is still valuable. “I don’t think that having skill in this area is going to be a lifetime of poverty or limitation. It’s still where the action is,” he added.

Deering encouraged laid-off workers not to lose touch with the industry entirely, warning that it could be challenging to re-enter the market if they disconnected for too long. “Keep up with your news,” he advised. “Once you get off the train, it’s much harder to get back on.”

The current wave of layoffs across the gaming and tech industries has been driven by various factors, including rising costs, declining revenue, and the economic downturn. In the gaming sector, studios have struggled with the high costs associated with developing AAA titles, coupled with the inconsistent performance of recent releases.

Jim Ryan, Sony’s then-CEO, explained that the layoffs were part of a cost-cutting measure aimed at streamlining resources. Unity’s interim chief, Jim Whitehurst, also pointed to the need for consolidation, stating that the company was “reducing the number of things we are doing in order to focus on our core business and drive our long-term success and profitability.”

However, the impact on employees has been profound, with thousands facing uncertain futures as the industry recalibrates. The increasing reliance on gig work and the advice to seek temporary jobs outside the tech sector underscore the fragility of careers in an industry known for rapid growth and just as swift declines.

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