| markers said: "a reduction in headcount and other restructuring measures are expected for the gaming division as well as other divisions." the reduction in headcount means layoffs for sure, which is bad in the sense people are going to be jobless in these tough times. but this is good for sony as a whole. and who knows once the economy is back and sony is ready alot of these workers could come back. anywho that was a side note, what i wanted to ask was is R&D part of the gaming division (like the R&D for the playstation of course)? if so do you expect that to go through the "restructuring measures"? i think we can all agree on that the tv division is going to go through those "restructuring measures" and maybe the phone division (if they survive this) quick opinion, as long as the ps3 maintains 100k+ sales a week and is not being outsold by the 360 2:1 i believe sony should keep the price as is for as long as possible to a. make profits and b. to have costs cut even more so a price cut on the ps3 is not as hurtful as it would be now. also outsourcing might not be a bad plan for them... |
Headcount reductions do not always mean layoffs. Typically, if the company tap dances around the word layoff, what that means is they'll release some of their salaried employees and then rehire them as contractors, which is where a lot of that money in "restructuring costs" goes -- the employees have changed from 'heads' to 'costs.' In the US, at least, the cost savings to be had here is in the paying of retirement benefits, unemployment, and most importantly, health insurance. These are no small costs! You release the employee to sever your obligations, then hire them back through a headhunter. Now you've got the same employee back for less money, no benefits, and no accrued vacation time.
Not to say layoffs won't also happen, because they obviously do, but Sony has to evaluate the long term, since the flip side of any recession is the unprecedented exponential growth when you come out the other side, like a rubber band snapping back. Sony will want the most experienced 'heads' already under contract-to-hire when the economy turns and Sony is back in the black.
In terms of SCE, I think this could mean some studios will be "set free." I think for R&D, the big concern will be refocusing to invest in tech that will pay off in the short term through practical applications. e.g. Investing in OLED = Good. Investing in Aibo Robot Dogs = Bad.
