If you’ve ever been through an acquisition or merger you’d have expected this news to come, but for those new to the concept it’s simple: you can’t keep everyone. After a complete merger you end up with two sales departments, two IT departments, etc.
Do you really need them all? No, not really. You’ll need to keep some on board in order to “brain dump” your job onto others and hopefully stick around for the long hall. Some employees will probably be shuffled to other job responsibilities while some get packages and a thank you card.
These are some of the growing pains when working towards a successful merger, so don’t be surprised or start spreading rumors when a few people are let go. As someone who’s gone through it in two big mergers I can say that certain departments already know their fate ahead of time. Many IT and sales folk start looking for new jobs the minute the merger is announced.
Reportedly we’re going to see smaller 45 nanometer cell processors in 2009 which leads to similar cost savings as we saw in the Xbox 360 hardware. Cost savings appear on the manufacturing side, of course, along with less power consumed by the processor leading to less heat generated by the console.