Source - http://biz.gamedaily.com/industry/feature/?id=15812

 GameDaily BIZ has been tipped off by a reliable game industry source that Sony Computer Entertainment Europe (SCEE) is looking to cut its workforce by about ten percent. Nick Sharples, SCEE's Director of Corporate Communications, has confirmed to us that although no one at the company has been laid off as of yet, SCEE is indeed looking at the possibility of reducing headcount. Despite the ten percent figure indicated to us by our source, an exact percentage or number of job cuts is not yet determined, said Sharples.

 

"We have informed our staff that we are considering proposals that may result in a number of redundancies across the SCEE Group in Europe," Sharples told GameDaily BIZ. "Until those consultations are complete we will not know how many redundancies may be needed. We will not be providing any additional information on this process or making further announcements at the conclusion of the process."

 

Sharples went on to explain that management is faced with the tough decision to possibly lay off some staff because SCEE needs to streamline operations and reduce costs.

 

"The reason for the proposals is that, although SCEE has successfully faced a number of challenges throughout its history to become a leader of the videogame industry, our industry is in the middle of a period of transition where some of the fundamentals of our business are changing," he explained. "Chief amongst these is that we are entering a future of increasingly networked and converged entertainment. In order to maintain our leading position in the market we sometimes have to make difficult business decisions. The management of the company has concluded that we need to change our structure, streamline and strengthen our business operations – and that our cost base needs to be significantly reduced."

 I consider this to be as 'official' as they come.

This is not a stab at Sony, but I wonder what suddenly brings this about? The PR front of Sony seems to be confident enough to not come across as 'worried' but when companies are making moves like these there are obviously things going on internally that we as the consumer don't know about.

To me this is worrying because I don't want what the signs that this points to to manifest or come true.

I hate to tell you but it's only the beginning.

Look in my post history. I've talked about Sony restructuring their company and have been saying it for months in other forums across the 'net. The PS3 will cause a massive change in the Sony corporation and I'm not so certain that it's for the better.

Sony won't die, of course not, but they will downsize many departments in the coming years, count on it.

John Lucas

I'm surprised this hasn't generated more discussion!?!?

Because SCEE cannot be considered a MASSIVE restructuring of Sony. Sony is just a little bit bigger than one division of their computer entertainment department.... just a little I guess.

 

EDIT: OriGin I was refering to lucas's statement's I think he is taking this news a little to far. SCEE lays of a few so I guess SCEA, SCEJ, SOE, SCE WWS, SCEK and so for ar next huh? Oh and the first party developers under this umbrella.....yeah their gonna get fired as well. I think there is a line between seeing a company;s downfall and wishing for it.

I never said it was massive and I never tried to bash Sony - you seem awefully defensive - and when you see things like this happening in companies it is usually just the tip of the iceberg.

staticneuron said: Because SCEE cannot be considered a MASSIVE restructuring of Sony. Sony is just a little bit bigger than one division of their computer entertainment department.... just a little I guess.   EDIT: OriGin I was refering to lucas's statement's I think he is taking this news a little to far. SCEE lays of a few so I guess SCEA, SCEJ, SOE, SCE WWS, SCEK and so for ar next huh? Oh and the first party developers under this umbrella.....yeah their gonna get fired as well. I think there is a line between seeing a company;s downfall and wishing for it.

Well, Sony is under a massive reconstruction. Was it 2 years ago, when they annonced they are closing 7 factories and sacking 10000 people (if i recall, this was only from Europe). I can't remember the time period, but it was propably few years. I think the cut was mainly from TV manufacturing. And this has lead into that Samsung manufactures Sonys TV:s. There are propably more cuts yet to come from Sony in other areas, where Sony works, because it still doesn't make (much) profit. So i think Lucas is pretty much on a right track about Sony. We could possibly even see Sony doing as Philips did.

the people behind Genji Super Rub-a-Dub need to go now, all the sport games should be axed the former 989 peope fired.

wait .... SCEE... thats Euros.... their games SUCK, they should be fired! surprising it took them this long to do it.

  

http://www.forbes.com/infoimaging/2003/11/05/cz_bf_1104sony.html

http://www.internetnews.com/bus-news/article.php/3099901 

http://en.wikinews.org/wiki/Sony_restructuring_plan_includes_10,000_job_cuts

 

So which is it? The restructuring that has netted them growth. But a toll of doom and gloom?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=apxJ8MoSy6No

Beating estimates, hitting shipping targets, shares at a 5 year high all the while countinuing to do what they need to do?

Here is my curious question...... Is this a sign of sony's demise based of of a restructuring plan that planned to elimnate 10,000 workers back when they had 143k, continued to this day when they now have 160k+ workers, show that sony is going down the crapper?

Ok, are we going to get hyped about news articles or are they going to be thought about? 

Seriously, the restructuring that has been ongoing hasn't been that much of a big thing or a loss, if while they were firing 10,000 people they went and hired another 20,000.

Static, there is a major trend in news stories about Sony's VG division right now. Sony is trying to cut their costs and decrease their hardware losses because PS3 is selling poorly.

The videogame market has risen companies to heaven and then crashed them back down to earth repeatedly. We're watching the latter happen to Sony now. No, its not wishful thinking. Consider the following:

These are facts. I've done my best to remove any spin. I've not mentioned competitors. Now, what conclusion do you draw from these? Is there something you would add?

"Sony wanted to ship 6 million PS3s by the end of March."

I posted this on another thread in response to one of your comments actually.

http://www.ps3center.net/story-389.html

It seems as if they did manage the 6 million

"If they reach 3.5mil this month, and sell 500K a month WW, they will sell-through 6 million in September."

That may be true but how is this a bad thing?

"They decreased the functionality of European PS3s to reduce costs--taking out PS2 components."

And to add Scaling functions which they claimed could not be done with both of the Chips there. The graphics synthisizer is there but the Emotion engine has now been emulated. Before the System was even launched 75% of the games were working and considering how the BC issues were approached back during the PS2 days it is a high chance that that list will be in the 90% asap.

"They eliminated the cheaper (higher loss) PS3 outside of Japan."

As it is claimed, but it doesn't make that much sense because they seem to be taking an even larger loss on the PS3 hardware in japan yet the kept the 20 gig alive there. Maybe that one is selling more?

"They are considering laying off ~10% of their gaming division workforce in Europe."

Which apparently was apart of their global restructuring plans as it is mentioned on this thead before that several factories and 10,000 workers were supposed to be layed off from between 2005 and 2008. They have made due with closing the factories and laying of people but odly enough the amount of employees and factories owned has grown.

 

If you need me to I can provide links. But simply put nothing here is dire. The situation isn't "that" bad. The PS3 is not at the top of the charts yet we are to believe that 3 million sold puts it in the near dead state? Sony stands a chance of removing themselves from the console war but I highly doubt that they will close shop which many people are implying. It is near impossible to believe that.