We probably won't notice any changes. It seems they're just cutting internal staff and remaining employees will have to take on more responsibilities. I'm sure they will still produce full seasons of quality shows and churn out Elmo and Abby DVDs and products to make some money for SW. However, it could possibly hamper items like Old School DVD sets for a while (until the economy improves) as they are a lesser-selling specialty item. Beyond that, Big Bird, Oscar, Grover and Elmo are all safe on the street.
Clear and simple... you know what a huge portion of the problem is? SW is funded by a lot of companies, but mostly through merchandising profits they put back in their TV shows and projects. And Elmo Live, which was supposed to be the break out toy of the Christmas season was too rich for anyone's blood this year. This freaking monster recession keeps feasting delightfully off itself. No people buying, less people selling, less people with jobs, less people buying.
Ah, remember when people were lied to and told the economy was in great shape multiple times during the last administration? And then everyone bought the big fat stupid things they couldn't afford... blu rays, X-Boxes, and gigantic TV's so everything looks cool. And all maxed out on credit cards, too. had they kept buying the small unnecessary things (small toys, food at local restaurants, the same stuff you'd buy at Target or Wal*Mart at a local business to help support it?)
Now everyone's lost everything, and even the happiest street in the world has been affected. Yeah, things look good...