Feeds

Sony to cut 10,000 jobs in quest for profitability

Top execs asked to hand back bonuses

3 Big data security analytics techniques

Sony is planning a major restructuring, with around 10,000 jobs – about 6 per cent of the company's global workforce – expected to get the chop after a press conference this Thursday.

Japanese newspaper Nikkei has reported (from behind a paywall) that the new chief executive Kazuo Hirai, who took the helm of the loss-making electronics giant in on April 1, plans to cut jobs in an effort to bring the company back to profitability.

Nikkei also reports that senior executives, including the outgoing CEO Howard Stringer, will be asked to hand back this year's bonus payments – which isn't too unfair considering the company lost $2bn last quarter.

Hirai's first target is expected to be Sony's small- and medium-sized LCD screen factories and the company's chemical company holdings, which should account for around half of the expected job losses. Hirai is also expected to take personal charge of Sony's loss-making TV business in an effort to bring the company's flagship division back into the black.

Sony has been hit hard by falling consumer spending on electronics since the 2008 financial crisis, as well as by the strong yen harming Japanese exports and by the problems caused by last year's earthquake. But the bigger threat comes from companies such as Samsung beating it in the core LCD market, and low-cost production elsewhere in Asia allowing rivals to undercut Sony on price.

Hirai faces a mammoth task in turning around Sony after four years of loss-making, and cutting jobs was a policy favored by his predecessor, Sir Howard Stringer, who cut 8,000 jobs and shuttered 10 per cent of Sony factories in 2009 after the company tipped into the red, and cut another 10,000 shortly after starting as Sony's CEO in 2005. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.