Sony Confirms Jobs Cuts, Restructuring Plans

Earlier this week Japanese newspaper Nikkei reported that Sony planned to announce a jaw-dropping work force reduction of 10,000 jobs worldwide. Today the company confirmed that number, along with other steps it plans to take to return to profitability.

Sony CEO Kaz Hirai made the announcement at a press conference today in Tokyo, and promised investors and the media that "Sony will change." Sony announced previously that it expects a loss of around $6.4 billion for the fiscal year that ended in March. This will mark the fourth straight year of losses for the company.

Under the new restructuring plan Sony will cut 10,000 employees, or six percent, of its global work force and cut its TV operations by 40 percent by sometime in 2013. The company's TV sector has proven to be a drain on the rest of the company's operations.

The company says that it will put its focus on its gaming business, mobile devices, and digital imaging. The company plans to launch new mobile products and establish some new mobile business models. In its gaming division, the plan is to release more games via PlayStation Network and to expand its focus on tablets and phones that are compatible with the PlayStation Suite.

Hirai claims that the cost of restructuring Sony will be around $926 million.

Source: TechRadar


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