JUNE 6, 2007 • After announcing plans in April to cut up to 160 jobs in Europe, or 8.4 percent of its workforce there, Sony Computer Entertainment says it would look at streamlining its operations in the U.S. and Japan.  Reports from employees of the American division describe the immediate lay off of between 80 to 100 employees at the Foster City headquarters. The game division posted an operating loss of ¥232 billion ($1.91 billion) in the fiscal year ending March 31 as a result of the costs to launch PlayStation 3.

Impact: Reducing costs and boosting productivity are common place in public corporations. But at a time when the PlayStation 3’s fortunes ride on future first-party blockbusters that can spur hardware sales of the console, can SCE afford to cut staff?