Hardly unexpected. In the past year, Sony made more profits through its financial operations (investments and so on) than its numerous products divisions. When your core business is not the core of your profits, you have a problem.
Also worth mentioning is the failure of Vita to compete against Apple. Sony might want to concede their defeat in the portable market and concentrate their energy on the Playstation 4.
It's slightly too early to discount the Vita. Its sales are sluggish but so was the 3DS one year ago. People were quick to bury it dead, but look: now the 3DS is the fastest selling system ever, even ahead of the DS. The only thing the Vita needs is a price reduction AND a few good games.
Does anyone knows areas where jobs will be cut? Sales, engineering, software, ...?