Sony to cut 10,000 jobs in restructuring plans
Retailer plans to axe 730 jobs
Sony yesterday said it would cut about 10,000 jobs and spend nearly $1 billion on restructuring the Japanese electronics and entertainment giant to stem its massive losses.
New chief Kazuo Hirai said revamping the firm would cost 75 billion yen ($925.7 billion) this fiscal year, just days after it warned of a record annual loss – its fourth consecutive year in the red.
Mr Hirai said he would aim to make the firm’s struggling television unit profitable within two years by slashing costs and boosting the image of its Bravia television brand, a business he described as part of Sony’s make-up.
“Now is the time for Sony to change,” Mr Hirai, who replaced Welsh-born US chief executive Howard Stringer earlier this year, told reporters at the company’s Tokyo headquarters yesterday.
“What is urgent is that we strengthen our core businesses while rebuilding our TV business... television is in Sony’s DNA.
“We must accelerate the speed of our management, reform our business portfolio, and innovate.”
In addition to the job cuts, which account for about six per cent of Sony’s total workforce, the reforms include expanding its PlayStation and online games business, pushing further into emerging markets and eyeing new markets, such as the medical equipment sector.
The firm said it was aiming for 8.5 trillion yen in revenue by 2015.