Sony has said that five per cent of its global workforce - around 8000 people - will be out of a job by April 2010.
The decision was made to combat the global economic slump, and will see manufacturing, production and inventory levels drop to bring down the company's operational costs.
Sony Computer Entertainment - the PlayStation division of the Japanese giant -will face review along with the rest of the company.
"In order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world," SCE told GamesIndustry.biz in a statement.
Despite the large number of staff on the chopping block, analysts believe the cuts will not be enough, and foresee each arm of the Sony family having to prove profitability in order to maintain staff.
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