Sony to Cut 10,000 Jobs - News
by William D'Angelo , posted on 09 April 2012 / 5,593 Views
According to Reuters, Sony is cutting 10,000 (6%) jobs of its global workforce. This announcement comes ahead of an investor briefing on Thursday, by new Sony CEO Kazuo Hirai who took over the job from Howard Stringer. Hirai is expected to talk about how Sony plans to turn its four years of being in the red, back into the black. Sony had forecasted a net loss of $2.7 billion for the fiscal year that just ended. The main cause of the loss is its TV business.
"Under a new CEO, it's easier to cut jobs or go in a new direction," said Yuuki Sakurai, head of fund manager Fukoku Capital. "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."
Nikkei said that 5,000 of the job cuts will come from the "the firm's chemicals and small and midsize LCD operations." On April 1 Sony merged its Sony Mobile display unit, with Toshiba and Hitachi into a new firm called Japan Display. However there was nothing specific of whether the cuts will take place in Japan or elsewhere.
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Damn, I wish a good luck for those people who lost their jobs
Sony is nothing at this point. They've lost 82% of their value from the year 2000, and they have lost money on PS3 sales overall. I don't see why people get so upset when someone references their failure. They are holding gaming back - and losing money! They have created a lose-lose situation for everyone involved and I don't see why people are so eager to defend them. Oh well. At this rate, if Sony doesn't make some serious changes, they will fail as a company, and their supporters will never be understood; only viewed as the fools of the past who obviously didn't understand their own consumer choices.
I think 3D is just not compelling for consumers. Sure we will pay for 3D movie experience once every few years when something of Avatar caliber comes out, but even the same movie I prefer to watch in 2D at home even though I have 3D TV. The reason is the glasses are a pain, need multiple of those, their batteries run out, need optimal viewing angle and distance.
Money money money moooneeey.
Sony appears to have missed the whole smartphone craze. The iPhone, Samsung's Galaxy series, the Droid Razr, etc..... These devices are selling millions upon millions (at $500-$700) a piece. Sonys smartphones have hardly made it on the radar for the average consumer.
And none of this has to do with the poor vita sales?
Any layoffs connected with the Vita? If not, the answer is no.
Poor Vita. Its needs that killer app... Uncharted - oh sorry its had that already - get those jobs cut now.
Sony either needs to start making their own panels or pick a better company than Sharp. The prices are way too high. They should really do like Samsung and dump LCD entirely and start producing OLED sets.
i thought they were using oled, but i'm inclind to agree with you regardless.
thanks will for the artical.
They should just get out of the TV business entirely. It has done nothing but produce losses for them for awhile.
Sony had so many things going for it. They need to drop physical devices and focus on their profitable businesses which are music, movies, and games. Sony no longer has the edge that warrants their typical "premium" priced devices.
