Sony Cuts 10,000 Jobs in Effort to Cut Costs, Save Company - The UpStream

Sony Cuts 10,000 Jobs in Effort to Cut Costs, Save Company

posted Saturday Apr 14, 2012 by Nicholas DiMeo

Sony Cuts 10,000 Jobs in Effort to Cut Costs, Save Company

Sony announced this week that the company would be cutting 6% of its total workforce, which is around 10,000 jobs, in an effort to bring the numbers in its TV business back into the black over the next two years.

Sony President and newly appointed CEO Kaz Hirai said at a press conference Thursday that he will bring life back into the electronics and entertainment company. Earlier in the week, Sony doubled its projection for its annual net loss for the fiscal year 2012 from $3.2 billion USD to $6.4 billion. If that were to hold true, it would mark the fourth consecutive year of losses for Sony and would be its worst loss in the history of the company.

Hirai remained confident in his effort to reform the company at the press conference.

As CEO, I take this very seriously. But at the same time, it strengthened my resolve to transform Sony. Employees too want to restore Sony to its former glory and go beyond... Sony will change. I've fully dedicated myself to changing Sony.

Internal problems like their several network and security breaches compiled with the environmental disasters in Thailand haven't put Sony in a good position to prosper in 2012. Hirai looks to strengthen the company's digital camera, game and smartphone businesses for the next two years and is trying to boost total company sales to 70% by March 2015 from the current 60%. Sony will also be taking a charge of just over $925 million USD this year to help offset the job cuts and over reform plans.

Can the PlayStation Vita become Sony's saving grace and help push them into the black on top of these restructuing efforts? Will their efforts fall short of the goal to keep them profitable into the next coming year? I said at E3 that the Vita, while potentially stealing the show, might not be enough to do what Sony needs. Perhaps these job cuts will. Tell us your thoughts in the comments below.

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