Sony plans to cut 10,000 jobs to save costs

Sony issued an earnings warning Thursday, and said it will cut 10,000 jobs and a number of product models in an effort to reduce costs.

Sony issued an earnings warning Thursday, and said it will cut 10,000 jobs and a number of product models over the next few years, as it reorganizes its electronics division in an effort to reduce costs.

The company now forecasts a net loss of YEN 10 billion (AU$117 million) for the fiscal year to March 31, compared to previous forecasts of a YEN 10 billion net profit for the same period. Restructuring charges associated with the planned job cuts and reorganization are responsible for this expected reversal of fortunes, the company said. The company still forecasts revenue of YEN 7.25 trillion, unchanged from the forecasts it issued in July.

Sony aims to cut costs by YEN 200 billion by the end of its 2007 fiscal year by shedding or downsizing 15 unprofitable businesses, cutting 20 percent of its product models, and reducing the number of manufacturing sites from 65 to 54. These changes will result in 10,000 job losses, half of them headquarters and administrative staff, the company said. The company will cut 4,000 of the jobs in Japan, it said.

In reorganizing its electronics business, Sony is betting heavily on Cell, a microprocessor jointly designed with IBM and Toshiba that it expects to use in future video game consoles. Sony's chief executive officer will directly oversee the division which promotes and develops the processor and related products and technologies.

A similar product-specific focus will be extended to the whole of the electronics division, with the abolition of the existing structure of "network companies" and the creation of clear business groups for specific product categories, Sony said.

Recommended

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?