by therealjaxon on Thu Apr 12, 2012 9:33 am
Sony To Cut 10,000 Jobs Worldwide This Year
Struggling Japanese electronics firm Sony has confirmed it is to slash 10,000 jobs across the world this year as part of a series of sweeping reforms.
The cuts were announced by Sony's new chief Kazuo Hirai as part of his plans to turn around the company and stem its losses.
2011 Sales
Some 6% of Sony's workforce will be cut. It is not yet known how its UK employees will be affected.
About 5,000 workers will come off the Sony payroll following the sale of a chemicals business and a small liquid crystal display fabricator.
Earlier in the week, Sony, which has been dragged down by its ailing TV business, more than doubled its forecasted annual losses.
The maker of PlayStation consoles and Bravia televisions said it expected to make a loss of 520bn yen (£4bn) this year, its fourth year of red ink and worst deficit yet.
In an attempt to revive its fortunes, Mr Hirai said the company will build up its digital imaging, games and mobile businesses, while seeking strategic investments in new areas such as medical equipment.
The Japanese firm will also expand further into emerging markets.
The new CEO, who took over from Welsh-born American Howard Stringer this month, is hoping to turn around a brand that has been trampled on by consumer gadget leaders Apple and Samsung Electronics.
It will spend about £582m this year on restructuring costs.
Speaking at a packed news conference at Sony's Tokyo headquarters, close to the company's first factory established 65 years ago, Mr Hirai said: "We have heard a multitude of investor voices calling for change.
"Sony will change.
"Sony has always been an entrepreneurial company. That spirit has not changed."
The electronics firm said it aims to cut its fixed costs in the TV division by 60% in the 2013/14 business, and trim 30% off the business' operating costs.
Eyeing new business opportunities in the fast-growing medical business, Sony said it was targeting annual sales of 50 billion yen in that sector in 2014/15, and was scouting for acquisitions and other strategic investments.
The company hopes to return the struggling TV division to profitablity by 2014.
The latest job cuts follow two rounds of layoffs Mr Stringer made in his six-year tenure at Sony.
A restructuring announced in December 2008 amid the global financial crisis saw the company slash about 16,000 jobs worldwide.
Industry analysts have said Sony must usher in major reforms to counter fierce overseas competition and continuing losses at its mainstay television business.
It still generates substantial profits from electronics parts.
Sony has blamed tough competition, falling prices, slow demand, the impact of severe flooding in Thailand last year, and the high yen among the reasons for its weak balance sheet.
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