Tuesday April 10 02:08 am
Sony Slashes 10,000 Jobs as CEO Kazuo Hirai Tries to Climb Out of the Red
Japanese newspaper Nikkei says Japan's Sony Corp will cut roughly 10,000 jobs, nearly six percent of its global workforce, "around the end of the year." The move comes after an extremely poor annual forecast and the hiring of a new CEO, Kazuo Hirai, on April 1. Hirai plans to downsize the Japanese electronics maker and pivot in a new direction to get profit out of the red for the first time in four years.On April 5, Sony more than doubled its loss forecast for fiscal 2011 to $2.9 billion, blaming floods in Thailand, poor foreign exchange rates and a failed partnership with Samsung. TVs were down almost 30 percent in sales - adding to the nearly $17 billion in losses for TV makers, including Sharp and Panasonic. The company's sales for home audio, video and digital imaging also dipped, and while the company cut the price of its Playstation 3 in August, sales of the gaming console are still suffering. In response, Sony will reportedly sell off its chemical products division and cut about 3,000 workers. The Tokyo-based company also looks to make cuts within its small and midsize LCD operations in order to better compete with brands like Samsung, which is the world's No. 1 supplier of TVs and flat screen panels.