Report: Sony to Eliminate 10,000 Jobs

According to a Nikkei newspaper report (by way of Reuters / Yahoo! News), Sony will cut six percent of its global workforce, or 10,000 jobs worldwide. The report says that the company's new CEO, Kazuo Hirai, is doing everything he can to put the company back in the black after four years of being in the red.

An investor briefing by Hirai, who took over this month for departing chief executive Howard Stringer, is expected on Thursday. Investors will get a full picture of what Hirai plans to do to put the company back on a profitable course. The Nikkei claims that half of the job cuts would most likely come from consolidating Sony's chemicals and small and midsize LCD operations.

Yuuki Sakurai, head of fund management firm Fukoku Capital, says that it's easier to make cuts and put the company on a new path when you are a new CEO, but warns that the weakened TV market is something Sony should consider getting out of.

"Under a new CEO, it's easier to cut jobs or go in a new direction," said Yuuki Sakurai. "One of the things I'd like to see is that they shift their resources to other areas outside TVs … If they stick to TVs, they may have to fight a war they may not be able to win."

Sony declined comment on the story from the Nikkei, but by the week's end we can expect to hear more about what cuts and the level of layoffs that it plans.

Source: Reuters

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