IGN reported last night that a round of layoffs was hitting Sony Santa Monica (God of War series). The studio that in addition to having spawned the popular Greek mythology action saga also helped many smaller teams and projects (ThatGameCompany's Flower and Journey, Giant Sparrow's The Unfinished Swan to name a few) is to be reduced by 50 people according to IGN's report. One unannounced project has subsequently been cancelled.
Sony later confirmed changes were occuring (without specifying numbers):
"SCEA can confirm that we have completed a reduction in workforce at Santa Monica Studio. This is a result of a cycle of resource re-alignment against priority growth areas within SCE WWS. We do not take these decisions lightly. However, sometimes it is necessary to make changes to better serve the future projects of the studio. We have offered outplacement services and severance packages to ease transition for those impacted."