Sony boss confirms 10,000 job cuts
- Posted April 12th, 2012 at 05:34 EDT by Mike Harradence
- 1 Comments
Newly-appointed Sony chief executive officer Kazuo Hirai has confirmed that the platform holder has cut approximately 10,000 job positions globally.
The news comes as part of a new business strategy aimed to pull Sony out of a financial pitfall following a series of annual losses.
Sony said its electronics sector will focus primarily on digital imaging, gaming and mobile, with PlayStation 3, PlayStation Vita and PlayStation Network listed as the firm’s core focus in the gaming department. No mention was made of PlayStation Portable, however.
“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” said the company.
“By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.”
“The Company also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content,” Sony added.
“Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14.”
Elsewhere, the electronics giant is seeking to launch new businesses and branch out into emerging global markets in an effort to give its ailing TV business a shot in the arm.
Furthermore, Sony will also pursue a restructuring of its headquarters and subsidiaries, which is expected to cost 75 billion yen during FY2012. However, the company is also targeting sales of 6 trillion yen and an operating income margin of 5 per cent in its electronics business for FY2014.
“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,” said the firm.
Sony did, however, add that it aims to “consider various measures to secure continuity of employment for employees at their new destinations.”
- 6:03am EDT - April 12th, 2012
Job cuts always suck, it's never good to see someone lose his living. I just hope and pray that all of them can find better prospects moving on.
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