Update: Sony Online Entertainment has confirmed 205 jobs have been cut. Three studios have been closed. The MMO shooter, The Agency, has also been canceled. The closures and lay-offs were part of a "strategic decision."
Reports are coming in that massive layoffs have taken place at several Sony Online Entertainment studios. SOE, the makers of D.C. Universe and Free Realms, have closed three studios and are expected to lay-off one-third of their workforce.
The rumors began last night when George Broussard, the co-creator of Duke Nukem Forever, tweeted that "Word that Sony Online Entertainment Seattle is having layoffs and that studio closure is possible." Kotaku was able to confirm through their own sources that closures affected studios in Seattle, Tuscon and Denver. According to their sources half of the staff at SOE Austin received pink slips, the same goes SOE San Diego.
An official statement was sent to Kotaku:
"As part of a strategic decision to reduce costs and streamline its global workforce, SOE announced today that it will eliminate 205 positions and close its Denver, Seattle and Tucson studios. As part of this restructuring, SOE is discontinuing production of The Agency so it can focus development resources on delivering two new MMOs based on its renowned PlanetSide and EverQuest properties, while also maintaining its current portfolio of online games. All possible steps are being taken to ensure team members affected by the transition are treated with appropriate concern."
It's always sad to hear about people loosing their jobs.
Tips, suggestions? Find me on Twitter.