Fri, Apr 13, 2012 - Page 10 News List

Sony to cut 10,000 jobs in restructuring

AFP, Tokyo

Sony yesterday said it would cut about 10,000 jobs and spend nearly US$1 billion on restructuring costs this fiscal year as the struggling electronics and entertainment giant moves to stem massive losses.

“As Sony Group as a whole, we expect roughly 10,000 job cuts,” it said in a statement yesterday as the firm’s new chief, Kazuo Hirai, held a news briefing to announce his plans to turn around the iconic firm.

The Japanese firm said it would also spend more than ¥75 billion (US$925.7 billion) this year on restructuring costs.

Hirai said that he would target deep losses at Sony’s struggling television unit, which the company said it was aiming to return to profitability by 2014, while posting total sales of ¥8.5 trillion by 2015.

Sony, which has suffered its fourth consecutive year in the red, said it would usher in changes across its divisions, boost its games business and expand further into emerging markets.

“Now is the time for Sony to change,” Hirai told reporters from Sony’s Tokyo headquarters.

“What is urgent is that we strengthen our core businesses while rebuilding our TV business,” he said.

Hirai’s comments came as the maker of PlayStation consoles and Bravia televisions warned earlier this week it would post a record full-year loss of ¥520 billion, more than five times the ¥90 billion loss it predicted in November.

The latest jobs cuts, about 6 percent of Sony’s total work force, come after an earlier restructuring announced in December 2008 amid the global financial crisis that saw the firm slash about 16,000 jobs worldwide.

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