There's a big difference here though in that they're services and not creating content. If you employ 100 people to process transactions, and then better tools enable 80 people to do the same work, laying off 20 people is good for business. But in creating games, if you have 100 coders and artists and engine developers working on a game, there's not much scope for trimming the fat.
But that's the thing, most people working for SCEE aren't related to gaming.
SCE is on world basis the 3'rd biggest developer and has 2200 game developers across its 14 studios only beaten by Ubisoft (2400) and EA (~5500)
http://spong.com/article/11947?cb=190
So looking at SCEE's work force of 1900 staffers it's only logic that most of them aren't related to game development.
And adding the people directly involved with game development at the 4 SCE studios
Sony Studio Liverpool ~ 120
Sony Studio Cambridge ~ 90
Sony Studio London ~ 250
Guerrilla Games ~ 120
~ 560
(numbers retrieved from IGN and Wiki, mainly based on interviews)
It's rather obvious that there's a lot of places to cut in SCEE where game development won't be effected.
And it's not like SCEE only works with game development, the branch handling the consoles should also have a considerable magnitude.
Unless you've got people sat around twiddling thumbs, cutting developers is going to cut development, somehow or other. Presumably projects will either progress slower, or the remaining developers will need to put in even more hours. I don't think there's much administrative overhead that can be pruned away here, and the job cuts will be from game (and other) projects.
But who in the world says the ~160 people come from game development? There's no valid source for such an assumption.
I know there's this B3D article with numbers of people to get axed at the different studios but GG which doesn't have other tasks than actuale game development isn't touched and the numbers for SCE Studios London are for the entire work force and not the actual amount of people working on games.
Not forgetting there's still the apparatus handling voice actors, 3'rd party relations, finances and so on where it's possible to "improve".
And if it really was financial issues then wouldn't SCE cut down on bonuses and such first? After all the games are their bread and butter (the game department's).