Despite the fact that Sony Computer Entertainment Europe just staged a relatively successful PlayStation 3 launch coupled with the development of the lauded PlayStation Home, it may surprise some to learn that the Sony division is laying off a portion of its staff.

"We have informed our staff that we are considering proposals that may result in a number of redundancies across the SCEE Group in Europe," Nick Sharples, SCEE's Director of Corporate Communications, told GameDaily BIZ. "Until those consultations are complete we will not know how many redundancies may be needed. We will not be providing any additional information on this process or making further announcements at the conclusion of the process."

"The reason for the proposals is that, although SCEE has successfully faced a number of challenges throughout its history to become a leader of the videogame industry, our industry is in the middle of a period of transition where some of the fundamentals of our business are changing," he explained. "Chief amongst these is that we are entering a future of increasingly networked and converged entertainment. In order to maintain our leading position in the market we sometimes have to make difficult business decisions. The management of the company has concluded that we need to change our structure, streamline and strengthen our business operations – and that our cost base needs to be significantly reduced."

According to information obtained by GamesIndustry.biz, SCEE will issue all members of staff with a letter informing them by close of business on Wednesday whether or not they are at risk of redundancy. Out of the current 1900 jobs at SCEE, up to 160 could be on the chopping block.

In seemingly related news, Corrado Buonanno, president of Sony Computer Entertainment Italia, has officially left the company after 12 years.

This comes just after news of Sony Corp. shares rising to a two-month high after Nikkei analysts expect profits exceeding original estimates.