Sony Looking to Make $250 Million in Cuts

In a meeting with investors today (as detailed by Bloomberg) Sony CEO Kaz Hirai acknowledged that the company is looking to make $250 million worth of cuts in its entertainment business, but gently rejected a plan by its biggest shareholder to sell off its media business.

"I know that the whole of Sony is greater than the sum of its parts," he said, as reported by Bloomberg. "Sony Entertainment is a core part of Sony and is crucial to our future growth."

Harai also pointed to the introduction of exclusive Sony content for the PlayStation 4 and the adoption of Blu-ray in the PS3 as examples of synergy in the business.

But according to CEO of Sony Entertainment, Michael Lynton, "no cost is too sacred to cut." Sony plans to make $250 million worth of cuts in its entertainment business, including shifting movie investment to TV production and media networks, and reducing the output of Columbia Pictures.

The business is currently looking at $150 million of overhead and operational efficiencies and $100 million of procurement savings, according to the report.

Hedge fund manager Daniel Loeb has been suggesting since May that splitting Sony Entertainment from Sony Electronics is the best course of action. Loeb is the CEO of Third Point which claims to be Sony's single largest investor, controlling more than $1.1 billion worth of the company's shares, or about 6.5 percent of the company.

Source: GII

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