Feeds

Sony axes 10,000 workers, eyes up mobile and medical biz

Cash-squandering giant in global spring clean

Next gen security for virtualised datacentres

Sony Corp confirmed today that it will lay off 10,000 workers worldwide in a move to turn around its TV biz, strengthen its core digital imaging, gaming and mobile divisions, and chase sales in emerging markets.

The consumer electronics giant's newly installed CEO Kazuo Hirai hoped that his strategy would allow loss-making Sony to return to profitability. The company said in a statement on its website:

As Sony moves to strengthen its core businesses and shift resources to growth areas, it will also restructure its headquarters, subsidiaries and sales company organisations in order to further enhance operational efficiencies.

As a result of these measures, Sony estimates that the headcount across the entire Sony Group will be reduced by approximately 10,000 in FY12. This includes employees expected to transfer outside the Sony Group as part of the sale of businesses and other realignments resulting from business portfolio optimisation.

Sony anticipates that many of these businesses will have future growth opportunities outside the Sony Group, and Sony will consider various measures to secure continuity of employment for employees at their new destinations. Sony is projecting restructuring costs of 75 billion yen in FY12.

Hirai replaced Howard Stringer at the start of this month, at which point he doubled the Japanese company's annual loss forecast to $6.4bn. Sony hopes to slurp 70 per cent of total sales and 85 per cent of operating income from its digital imaging, gaming and mobile wings by 2014. But Hirai can't deny that the task ahead of him is daunting.

On mobile, the company plans to integrate R&D, design engineering, sales and marketing operations of its smartphone biz, Sony Tablet and VAIO offshoots to get products to market faster, it said. Part of that strategy, which it hopes will lead to mobile sales of 1.8 trillion yen (£13.9bn, $22.2bn) by 2014, will include launching new mobile products, Sony added.

Its TV business remains in the red, however, but Sony is hoping to return that to profitability by its 2014 fiscal year. It described itself as a "new entrant to the medical industry", where it is punting peripherals such as printers, monitors, cameras and recorders. Sony hopes to bring in sales of 50bn yen (£387m, $616m) in that market over the next two years.

Additionally, the company will move into the medical equipment components sector and the life science industry. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
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.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?