PS3 Fanboy

Earlier, we reported that up to 100 employees were laid off by SCEA. It appears that these figures were incorrect, and "way high." In a statement to GameDaily, Dave Karraker noted that less than 50 employees were let go. Government regulations require a company that lays off more than 50 individuals to issue a WARN notification -- something Sony did not have to do in this latest step in their corporate restructuring.

"We had a number of different department shifts in restructuring throughout the company, but nothing that's different from what we would typically have," Karraker explained. "The stuff that's been going on and has been going on since I started, back in September, is just continual shifts and changes within departments that's nothing unusual for any company on a regular basis."

According to GameDaily's findings, the lay offs affected a variety of departments, including Consumer Service, Finance, Business and Technology, Operations, 1st and 3rd party test, Marketing and Sales. Karraker refuted the claims, and made note that such layoffs are part of "normal business practice."

Sony's game division was first reported to be undergoing restructuring back in April and now, we're catching word that layoffs have begun. Two months back, only Sony Computer Entertainment Europe (SCEE) was going to have to bear the brunt of restructuring by eliminating up to 160 jobs. Now, word is coming in about 80-100 layoffs from Sony Computer Entertainment America (SCEA). Apparently, much like an "American Idol elimination episode," teams were split amongst between those being asked to leave and those likely asked to take on the other team's workload. Severance packages were provided but no one was asked to "finish out the rest of the day," instead being told to come back after hours or ask management to collect their belongings. SCEA's PR man Dave Karraker, told Kotaku earlier that "it was necessary to analyze our current business and to restructure the company as necessary," which more or less validates the layoffs as a necessity. No official word from SCEA on if more layoffs were planned or what potential gaming fallout may occur from this restructuring.

[Update: When asked if PS3 sales were the direct cause of the SCEA layoffs, Dave Karraker declined and said, "this move is not wholly related to any one product in our portfolio." So there you have it.]