Struggling Sony axes 8,000 jobs

Sony is axing 8,000 jobs worldwide. In addition, Sony is planning to reduce investment in the electronics business by approximately 30% in the fiscal year ending March 31, 2010, compared to its mid-term plan.

By the end of the current fiscal year, Sony plans to cease production at two overseas manufacturing sites, including Sony Dax Technology Center in France, which manufactures tape and other recording media. By further advancing initiatives including rationalizing its manufacturing operations, shifting and aggregating manufacturing to low-cost areas, and utilizing OEM and ODM partners, Sony plans to reduce the total number of manufacturing sites by approximately 10%, from the current total of 57, by March 31, 2010.

Through measures including the realignment of its manufacturing sites, a review of its development and design structure, and the streamlining of its sales and administrative functions, Sony has announced the company will implement a company-wide (including Headquarters) rationalization. Sony intends to reallocate and optimize its workforce through programs including work reassignments and outplacements.

As a result of these measures, by March 31, 2010, Sony plans to reduce headcount in the electronics business worldwide by approximately 8,000, out of approximately 160,000 as of September 30, 2008. At the same time, Sony plans to reduce headcount in its seasonal and temporary workforces.

In addition to these measures, Sony said in a statement that they will continue to implement measures as required to help assure both short and longer-term profitability and growth.

Sony plans to outline the anticipated impact of these measures, including anticipated expenses related to their implementation, in Sony’s updated forecast of financial results for the current fiscal year to be included in its third quarter earnings announcement, scheduled for January 2009.

Source: Sony Corp.

MacDailyNews Take: In related news: Sir Howard Stringer, Steve Ballmer, and Michael Dell to headline annual Has-Been Convention 2008

16 Comments

  1. @Superior Being:
    what would you suggest?
    I just bought 46″ Sony, but when I saw it side by side with Sharp, I am questioning my choice.

    I have Sony’s 300 DVD/CD changer. I have to say that this is the worst player I have ever seen, multitude of problems, design flaws, underpowered, basically total crap. Now on top of it some of the sensors malfunction.
    Most annoying problem: titles are not displayed on the front like on older player I have, to see/scroll titles you have to go to Folder, which requires you to eject the disc, which is painfuly slow.
    Once again, total crap, I am really rethinking my opinion about Sony.

  2. @Superior Being
    As Mac enthusiasts, we should be fully aware that just because something sells better, doesn’t make it better. I have a PS3 and a Wii, and don’t play any games on the Wii, because compared to the PS3, the games just plain suck. Great for Wii Fit and kids games, but for more mature gaming the Wii is useless.

    Sony will bounce back. Unlike a particular Software company we love to hate, they don’t rely on one or two products to be successful.

  3. Sony hasn’t been successful for years. If you look at their profit statements I don’t know why it has taken this long for them to have cutbacks. The shareholders must have finally spoken. With respect to comments on their product… They have not been leading edge in the CE side for about 15 years. The PS3 is a nice unit but they lose money on each to have a blue-ray player in it. And, that is another farce altogether. It is too bad HD-DVD lost out to Blu-ray. Most people still can’t take advantage of the advanced functionality of their blu-ray discs because their players aren’t enabled. This is the essence of how Sony has destroyed it’s own market-share. Convince the people their format is better. Once they say ok. Give them the technology in dribs and drabs vs. giving it a solid go.

  4. “MacDailyNews Take: In related news: Sir Howard Stringer, Steve Ballmer, and Michael Dell to headline annual Has-Been Convention 2008”

    Isn’t it ironic that has-beens regain a small portion of the spotlight at a convention no one has heard of or would likely even attend. How appropriate…

  5. I have to say I’m sorry to see this, I like Sony’s products and apart from their music division the company as a whole. I’m a big PS3 fan and have a bunch of games for it… I hope they keep going and get back on track, PS3 has been outselling the 360 for the past few months so they are starting to get it going, just not quite fast enough.

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