Sucker Punch Productions, the Sony-owned developer behind Ghost of Yotei and Ghost of Tsushima, has reportedly laid off 26 employees. The workforce reductions were disclosed on October 26, 2026, with studio leadership citing challenging market conditions and staffing requirements for its next project.
The layoffs were first detailed by Aftermath journalist Nathan Grayson, who obtained an internal email sent to Sucker Punch employees. A former employee separately told the publication that 26 people had lost their jobs. Sony has not publicly confirmed the precise number of affected employees.
In the internal communication, Sucker Punch leadership explained that the decision followed an assessment of the studio’s future development needs.
“After carefully observing the challenges in the market and reviewing the team needs for our next project, we’ve decided to make some staffing reductions,” the message stated.
Leadership confirmed that multiple positions across the studio would be eliminated, acknowledging the difficulty of the decision and indicating that efforts had been made to support affected employees.
The message also described the situation as a difficult day for the studio and said additional information about its future would be shared with staff next week.
Sucker Punch is one of PlayStation’s established first-party developers, having created the Infamous and Sly Cooper franchises before moving into the Ghost series. Its latest major release, Ghost of Yotei, launched in 2025 and continued the studio’s focus on open-world action adventures.
The reported layoffs follow a commercially successful period for the developer. Ghost of Yotei was reportedly Sony’s best-selling PlayStation 5 game of 2026 as of June, while its Echoes of Sekigahara expansion extended the game’s content.
The reductions also come amid continued restructuring across the wider gaming industry. Microsoft recently implemented workforce reductions affecting Treyarch and Raven Software, while Cold Iron Studios also experienced layoffs following its work on the Aliens: Fireteam Elite franchise.
For Sucker Punch, several important details remain unclear. The studio has not disclosed which departments were affected, whether the reductions involve specific development teams, or how the changes might influence its next game.
The internal message references an upcoming project but provides no details about its identity, development schedule or scope. There is currently no verified indication that the layoffs have resulted in a cancellation or delay.
Further information about the studio’s development plans may emerge following the internal update promised for next week.
