“Struggling electronics and entertainment conglomerate Sony Corp. said on Thursday it would cut about 7 percent of its global work force, sell more than $1 billion in assets and post a loss this year,” Nathan Layne reports for Reuters. “With a restructuring plan that underwhelmed some analysts, Sony hopes to reverse its fading fortunes and catch up with rivals such as Matsushita Electric Industrial and Sharp Corp. in flat TVs and Apple Computer and its popular iPod player in the portable music industry.”
Layne reports, “The inventor of the Trinitron TV and Walkman cassette player said it would book 210 billion ($1.9 billion) yen in restructuring charges in the two business years through March 2007 as it closes plants and slashes 10,000 jobs. ‘These are pretty moderate plans,’ Mizuho Securities analyst Koichi Hariya said. ‘There could have been some investors who had expected more drastic measures from the new foreign CEO.'”
Full article here.
“Sony also fell behind Apple Computer Inc.’s iPod in what should have been its forte — portable music players. The iPod models are proving a big hit in Japan, where Apple began its iTunes store in August to rave reviews,” Yuri Kageyama reports for The Associated Press. “Under the plan announced today, the company said it would review real estate, stock holdings and other non-core assets and dispose of some $1.2 billion in assets by March 2008.”
Kageyama reports, “To cut costs, Sony said it would downsize or terminate 15 business categories, reduce the number of models by 20 percent compared to the current fiscal year, and reduce the number of factories by 11 to 54. Sony did not specify which businesses would be trimmed.”
Full article here.
Related articles:
Sony to announce turnaround plan on September 22 – September 12, 2005
Sony’s new Windows-only ‘Connect Player’ bears eerie resemblance to Apple iTunes – September 09, 2005
Too little, too late? Sony getting killed by Apple in digital audio – September 09, 2005
Also-ran MP3 player makers miffed by Apple’s impossibly low price for iPod nano – September 09, 2005
Sony and Warner holding out on Apple iTunes Music Store Australia – September 08, 2005
Sony Connect President in wake of iPod nano: ‘we will accelerate our challenge’ to Apple iPod – September 08, 2005
Apple close to deal with Sony for ‘online music download service for Japanese iPod users’ – September 05, 2005
Bad news for Sony: millions worldwide choosing Apple iPods – August 22, 2005
Sony to combat music market ‘maestro’ Apple Computer with ‘Walkman Beans’ – August 18, 2005
Musicians stage mutiny against Sony, defiantly offer music via Apple’s iTunes Music Store – August 10, 2005
Apple’s Japan iTunes Music Store debut more bad news for Sony – August 04, 2005
Sony debuts US$199 1GB iPod shuffle killer, bills it ‘small as a pack of gum’ – July 06, 2005
Sony BMG and EMI try to force Apple to ‘open’ iPod with iPod-incompatible CDs – June 20, 2005
Sony pimps Windoze Bologna
The last point above is important. Apple did the same back in 1997. Strip out all the fat, get down to your core business and build from there.
Sony will be back.
It seems to me that consumers are pretty much determining which business units to trim…
Sony needs to reduce its models by more than 20%… and change the damn naming scheme.
Kid 1: Hey, I just got the new RT-88594AB
Kid 2: Sweet… I’m holding out for the 88457TC model.
MW=more, as in “Sony needs more fat trimmed”
If Sony had their music on iTMS Japan (Australia?, etc.), they’d probably be making enough to save some of the cuts they’re planning.
What the heck does:
MW=
Mean???
They could sell their music and movie interests. To Apple maybe? Of, course then Apple really would have to go toe to toe with Apple Corp. in court.
Die Sony! Die!
Magic Word, Huh, the one you have to enter to post.
Got it
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
MW= radio, as in no soap…
Isn’t Sony one of the labels pressing for ‘flexible’ (hgher) iTMS pricing? Maybe they need the money.
Ouch. 10,000 jobless folks. That sucks.
Release they damn PS3 already, that will boost some sales, if they don’t get bent over too far by M$ and their early release of the xbox 360. I think it is time for a changing of the guard, so long sony.
MW=account
I Know how to account, aone, atwo, athree.
But, hey! At least they’re not ‘beleaguered.’
Wow, that’s a major weight loss program, is it Slim Fast?
MW = peace
as in, Rest in Peace, Sony
Yeesh. This should make the gaijin CEO really popular, huh? Layoffs are still a relatively new concept to most Japanese, where the tradition was always to join a company and remain a part of it until retirement or death. (Of course, not all of the 10,000 lost jobs are going to be Japanese.)
I actually just got a job with Sony, so this isn’t terribly encouraging to hear on my third day at work.
I doubt Sony is anywhere soon, so hold ur horses please. I actually like sony they make pretty good products!
I’ve given up on Sony products. Last two things I bought from them have really annoying user interfaces. For example the VCR doesn’t show the time counter during fast forward or rewind, so it’s impossible to fast forward past a 30 or 60 minute episode. Thanks, Sony! The DVD player is equally annoying in other ways.
Sony used to stand for quality.