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Estimated layoffs at SCEA were "totally off base"

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."