You will be redirected back to your article in seconds

Sony Forecasts $1.1 Billion Annual Loss, Will Cut 5,000 Jobs and Sell PC Unit

TOKYO — Sony reported a net profit of Y27.0 billion ($266 million) in the third quarter of its fiscal 2013, ended Dec. 31, 2013, compared with a loss of Y10.8 billion ($106 million) the same period the previous year.

The company also enjoyed an increase in operating profit of Y43.9 billion ($433 million) year-on- year to Y90.3 billion ($890 million).

But for the fiscal year, which ends March 31, 2014, Sony is forecasting a $1.1 billion loss.

The company also announced that it will slash 5,000 jobs to drain red ink from its still-faltering TV and computer operations. In another restructuring move, the company will hive off televisions into a separate unit, while selling its PC biz to an investment firm.

In October, Sony had predicted a 30 billion yen ($295 million) profit, but the turnaround promised by Sony topper Kazuo Hirai is proving harder than expected.

Sony attributed the recent gains to positive exchange rate fluctuations, as well as to improvements in the performance of its Home Entertainment and Sound segment, which includes its long-ailing television biz, and its Game segment, which has benefitted from the successful launch of the PlayStation 4 console.

In the Pictures segment operating income fell by Y1.1 billion year-on-year to Y24.3 billion ($239 million), with the slide caused by relatively lower B.O., as well as higher costs for new shows for U.S. network TV. Overall, however, segment sales gained 7.1% to Y234 billion ($2.3 billion) due to the weakening of the yen against the dollar.

B.O. highlights for the quarter, including “Captain Phillips” and “Cloudy with a Chance of Meatballs 2,” could not match the previous year’s outstanding B.O. performance of “Skyfall” and the home entertainment releases of “The Amazing Spider-Man” and “Men in Black 3.”

One bright spot in Sony’s fiscal third quarter of 2013 was the TV series “Breaking Bad,” which reaped strong SVOD and homevideo revenues.

Sony expects to complete the job cuts by March 2015, while shaving 100 billion yen ($985 million) in fixed costs.

The company has sealed a deal with Japan Industrial Partners, a Tokyo investment firm, to sell off its PC business for an undisclosed sum, with Sony retaining a 5% stake. (Recent rumors had erroneously linked the Vaio computer division to China’s Lenovo.) Sony also plans to split off its television biz into a new company by July.

More Biz

  • pharrell brain child show

    'Blurred Lines' Flares Up Again - Marvin Gaye Family Claims Pharrell Perjured Himself

    Like a zombie that just won’t stay dead, the “Blurred Lines” case keeps coming back. While the 2015 verdict, in which Pharrell Williams, Robin Thicke and the song’s publisher were ordered to pay nearly $5 million to Marvin Gaye’s family for infringing upon the late singer’s 1977 hit “Got to Give It Up,” was basically [...]

  • WGA Agency Packaging Fight Placeholder Writer

    WGA-Agency Showdown: Role of Showrunners at Heart of Legal Arguments

    The Los Angeles courtroom of U.S. District Judge Andre Birotte was packed with well-dressed lawyers on Friday morning, eager to watch a high-stakes brawl between Hollywood’s largest talent agencies and the Writers Guild of America. Birotte allowed only four lawyers from each side to sit at each table, leaving the vast majority of the attorneys [...]

  • 700700 + Ted Turner Dedication. December

    Ted Turner Tributes Established With WarnerMedia Gift to University of Georgia

    WarnerMedia has established a scholarship, internship program and exhibition hall at the University of Georgia to be named after maverick media mogul Ted Turner. The company has gifted $550,000 to the university to create the Ted Turner Scholarship Fund, for students attending the school’s Grady College of Journalism and Mass Communication, which is also the [...]

  • WGA Agents Contract Tug of War

    Judge Leans Toward Agencies' Position in Writers Guild Antitrust Suit

    A federal judge indicated on Friday that he will allow the three major agencies to pursue their antitrust lawsuit against the Writers Guild of America. The WGA has urged U.S. District Judge Andre Birotte to throw out the suit, arguing that its actions in its ongoing battle with the agencies are protected under antitrust law. [...]

  • Keli LeeStep Up Women Network 9th

    Keli Lee Exits ABC Studios International as Disney Considers Division's Fate (EXCLUSIVE)

    ABC veteran Keli Lee has left the international arm of ABC Studios as Disney considers the future of the London-based content unit, Variety has learned. Sources said Disney has told the creative community that there “has been a re-evaluation of ABC Studios International” and that it is re-assessing “the creative direction” of the business. There [...]

  • Biggest Scandals Feuds and Apologies of

    Biggest Scandals, Feuds and Apologies of 2019

    Variety looks back on some of the biggest scandals, feuds and apologies of 2019: College Admissions Scandal Wealthy parents including Felicity Huffman and Lori Loughlin were charged with bribing school officials to get their unqualified kids into prestigious universities. Shane Gillis Executives at “SNL” hired, then fired, Gillis in September, before the new season started, [...]

  • Biggest Media Moments of 2019

    From 'Catch & Kill' to Shepard Smith: The Biggest Media Moments of 2019

    Variety looks back on some of the most memorable media events of 2019: ‘Catch & Kill’ Reopens Wounds at NBC News Ronan Farrow’s book relitigates his complaints that NBC News tried to tamp down his investigation of harassment and assault allegations against Harvey Weinstein. NBC News denies the claim. The book contains new allegations against [...]

More From Our Brands

Access exclusive content