A slide from Sony's corporate presentation this morning stated that there are planned headcount reductions for the games, movie and pictures divisions - without going into further detail - and prompting speculation that jobs were to go in videogame departments.

However, Sony Computer Entertainment Europe president David Reeves has informed staff internally that the JPY 250 billion (USD 2.8 billion / EUR 2.1 billion) cost-cutting measures will not include a reduction in games staff, as previously stated last month.

"This is still the case. He has just sent a message to employees here to that effect," said a spokesperson for Sony.

"As was the case with the previous Sony restructuring announcement this mainly concerns our electronics business."

http://www.gamesindustry.biz/articles/sony-job-cuts-unlikely-to-affect-games-division

That is nice to hear, but remember in the world of business a lot can change within one year. (usually for the worse)

So don't consider anything safe until sony posts a profit.

Edit: I just noticed David is the one stating this, so I refuse to believes it, make someone else say it.

I think they might cut some staff in the PR and management part of SCE myself.

Sony are not going to cut what has been there most profitable business section for so many years because the last few years have been bad. Long term the gaming sector will make them huge sums of money, if sectors are to be cut there are many others which will go first ala Sony Ericsson.

Sony Ericsson are fucked.

Am I evil for wanting Sony Ericsson gone, same with Sony cameras. I really hate those two sectors.

The sign was on the wall for Sony Ericsson when Sony didn't let them make PSP Phone...

I wouldn't really mind what they cut as long as it's not to do with SCE or if it is - minimal/most needed cuts.

I most definitely do not see any of the first party devs being sold off, they are golddust for Sony. Sony get a huge return for 1st party games and none to my understanding have sold badly, all have done rather well actually. Big first party Sony games break 1 million with absolute ease, 2-4 harder to do and some 8+ million.

Say Killzone 2 did cost $60 million, 2.5 million sales would put them in the black. I really do not see that being a problem for that game and add on the DLC, money will flow for Killzone 2. That game has been in production for years, easily top 3 in the most expensive first party games for Sony. Then there is GT5, prologue has sold million so yeah, GT5 alone would make up for the dev costs of all first party games. (:P)

I'd respectfully disagree.   Yesterday's dollars mean nothing to the bottom line now, and the number of current employees has no impact on the promise of future possible profits. I've survived three reductions in force (layoffs...) and the amount of work expected for your division does NOT decrease, just because the amount of bodies present has.

I'd also suggest that if a division is losing money now, when the savings is needed, you cut in anyway possible in that division to mitigate the losses.  Unless you are saying that you think SCE is running at 100% capacity AND efficiency (highly unlikely).

Hell I hope this dude is wrong.  If they don't start saving money on the playstation brand, how are they ever going to lower the damn price?