Feeds

Sony cuts 10,000 jobs

Nice growth strategy

Boost IT visibility and business value

Sony is cutting 10,000 employees under a $2bn restructuring plan, to shake up operations and face increasing competition.

Sony's new chief executive, Howard Stringer,announced the restructuring which is intended to save $1.8bn a year once changes are completed in 2008.

Sony expects the majority of job cuts to occur internationally with 4,000 positions going in Japan. The company is also reducing its number of factories from 65 to 54. Sony will incur a $1.25bn hit as a result of the changes during its current fiscal year.

The company is concentrating on revitalizing its electronics business through structural forms and a "well-defined" growth strategy to boost annual sales to $72bn and operating margin by five per cent at the end of fiscal 2007.

Restructuring comes as Sony faces increased competition across the board. Sony manufactures Wega TVs, Vaio PCs and Walkman music players which are being challenged by companies like Samsung Electronics and Apple Computer for market share while also challenging Sony on both pricing and profit margins. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.