Layoffs Hit Sony Computer Entertainment America

Sony Computer Entertainment America yesterday laid off between 80 and 100 employees at its Foster City central office, gaming blog Kotaku reported today. Kotaku's source, allegedly among those let go, claimed that the move came without warning, and was unexpected even among much of the company's management. The downsizing was executed throughout the day. Laid off employees were reportedly given a "fair" severance package. Today's news comes less then a month after reports that Sony Computer Entertainment Europe saw similar downsizing, resulting in the loss of approximately 10% of its workforce, or 160 employees. At the time, SCEE spokesperson Satoshi Fukuoka indicated that other Sony Computer Entertainment divisions, such as its North American or Japanese operations, could see "streamlining measures." SCEA corporate communications head Dave Karraker responded to reports of yesterday's events. "In an effort to accurately align the company to meet the changing needs of our consumers and of our industry, Sony Computer Entertainment America has found it necessary to analyze our current business and to restructure the company as necessary to continue our standing as the market leader," he said. "These restructuring efforts are currently underway and do include the streamlining of our operations and other initiatives to further strengthen the business, reduce costs and increase operational efficiency."