Sony sources: Layoffs won't affect Connect

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DENVER -- It seems rumors of Sony Connect’s demise are greatly exaggerated (all apologies to Mark Twain).

Over the weekend, reports began to surface that the long-struggling Sony Connect digital music and video service was going to be shut down over the next several months.

However, sources at Sony say that is not the case. While it is true that the division is laying off 20 employees and reallocating many of its engineering resources to the PlayStation group, a Sony source tells Billboard.biz it "will have no impact on the Connect store," which will continue to offer digital music and video.

Connect chief Steve Banfield is expected to leave the company in the next few weeks. The Sony source says Connect employees will report to senior vps Tim Schaaff and Fumi Kanagawa until a new reporting structure is developed, the details of which the source says are "not yet clear."
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