Struggling Sony to cut 10,000 jobs, slash factories

“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.

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19 Comments

  1. 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”

  2. 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.

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