Sony Computer Entertainment Europe (SCEE) has put about an internal memo warning its staff members about the possibility of job cuts.

SCEE currently has about 1900 members of staff from which 160 may lose their jobs.

David Reeves, the SCEE boss, penned the letter which has been read out at meetings and it claimed that Sony needs to reduce its cost base. On Wednesday staff members will be given letters saying whether or not they are being considered for redundancy.

The letter starts by saying, "SCEE has successfully faced a number of challenges throughout its history to become a leader of the videogame industry. However our industry is in the middle of a transition where some of the fundamentals of our business are changing".

"In order to further our market leadership 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."

The letter states that all parts of the SCEE organisation have been looked at in regards to losses by saying, "Regrettably, we must also now look at the possibility of making compulsory redundancies in the UK offices, in WWS studios in Europe and in our territory offices", and that staff "across all areas of the business" may be affected.

Reeves in the letter summed up saying, "I also appreciate that what I have just announced will have come as a major and unwelcome shock, and it is something we have fought hard to avoid. However, the business targets that we face have regrettably made it unavoidable".

>> Link - Official Site/SCEE