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