Sony to cut $1.1 billion from costs

Thousands of workers to be pinkslipped

Sony has announced cost cuts amounting to $1.1 billion, with a total of 16,000 workers slated to get the ax, but the layoffs will not affect Sony’s movie, game, music or financial businesses.

The announcement, made Tuesday in Tokyo, is Sony’s attempt to slow sharp profit drops as the worldwide recession bites into sales of key Sony products and the strengthening yen shrinks overseas earnings.

The job cuts center on the electronics division. They’re skedded to continue through March 2010 and include 8,000 full-time and 8,000 temporary workers, with only the former considered part of Sony’s 185,000 global workforce.

The company will also close 10% of its 57 manufacturing sites while slashing investment in its electronics business 30% by March 2010.

Sony said in a statement that the cuts come “in response to the sudden and rapid changes in the global economic environment.”

Conglom has also lowered its profit projection for the current fiscal year, ending in March, by 59% to $1.5 billion.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading