View Full Version : Layoffs hit Sony's PlayStation unit

Jun 6, 2007, 02:54 PM
The "market leader" gets humbled...


June 6, 2007 9:15 AM PDT
Layoffs hit Sony's PlayStation unit
Posted by Daniel Terdiman
At least 80 employees in Sony Computer Entertainment of America's Foster City, California PlayStation unit have been laid off, according to a report in the popular video game blog, Kotaku.

But Kotaku quoted SCEA spokesman Dave Karraker as saying, "In an effort to accurately align the company to meet the changing needs of our consumers and our industry, (SCEA) has found it necessary to...restructure the company as necessary to continue our standing as the market leader."

And in an email to CNET News.com, Karraker confirmed the report Wednesday morning.

Given Sony's troubles--the much-hyped PlayStation 3 is currently in last place among next-generation video game consoles, trailing Nintendo's Wii and Microsoft's Xbox 360--Karraker's comment about SCEA trying to maintain its position as "market leader" is being laughed at by some. Still, the company's PlayStation and PlayStation 2 were world-beaters, and the PS2 is still a best-seller.

Kotaku reported that Karraker would not comment on the number of employees affected, which the blog put at "roughly 80 to 100," according to a source who was among those laid off.

Those who lost their jobs were asked to leave immediately and "either have their manager pack up their desk for them or schedule an appointment some evening to fetch their possessions," Kotaku wrote.

Jun 6, 2007, 02:56 PM
It was bound to happen sooner or later.

Jun 6, 2007, 02:57 PM
Kicked out immediately? That seems a little drastic.

Jun 6, 2007, 02:59 PM
Kicked out immediately? That seems a little drastic.

Microsoft and Nintendo eagerly await with open arms...;)

Jun 6, 2007, 03:03 PM
Kicked out immediately? That seems a little drastic.

Not really. Companies don't want to deal with the possibility of employees taking out their revenge by giving them any time with access to computers or the companies files. Most likely those laid off got a decent pay package to compensate for some time to look for a new job but there is no way any big company is going to risk the damage an employee could inflict after getting angry about losing their job. It was one thing when a single PC didn't have access to the network and an almost limitless number of files to help wreck havoc but in this day and age, if you get laid off from most companies you'll be shown the door immediately and only allowed to clean your desk out under supervision.

Jun 6, 2007, 03:51 PM
This happens to every major division of every major company.............however, if you look at job postings, they are still hiring in Foster City and San Diego.
So these must be positions that got a little bloated during Sony's "better days."

In fact....Nintendo just did the same thing when they went "public."