The future of the long struggling Sony Connect digital music and video service is very much up in the air following a late Friday (June 15) meeting.

According to sources at Sony, the division is undergoing a "reallocation of resources" that may eventually result in the service being shut down.

Close to 20 employees are being let go, including the current head of Sony Connect Steve Banfield -- who is expected to depart in a matter of weeks. Remaining Connect employees will report to senior VPs Tim Schaaff and Fumi Kanagawa until a new reporting structure is developed, something the source says it "not yet clear."

Much of those who remain are engineering employees who will be assigned to support the PlayStaion division. While the Sony source says there will be no immediate affect on the Sony Connect service, it is possible that it could be shut down by the end of the summer, or take some other as-yet-unknown form.