Sony to cut 10,000 jobs after fourth year in red

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Albuquerque News.Net
Monday 9th April, 2012

TOKYO - After reporting four straight years of losses, Japanese electronics major Sony is planning to cut 10,000 jobs, or about 6 per cent of its workforce, the Nikkei newspaper reported Monday.

The development comes as new Chief Executive Officer Kazuo Hirai, 51, vowed to turn around the company that faces stiff competition from Samsung and Apple.

Hirai took over charge this month from Howard Stringer.

The Nikkei said half of the job cuts would come from consolidating the firm's chemicals and small and midsize LCD operations.

Sony, which in February more than doubled its annual loss forecast, has already been downgraded by Standard Poor's and Moody's.

The losses were blamed on a stronger yen, production cuts due to last year's floods in Thailand and the cost of quitting a display-panel venture with Samsung.

On Thursday, Hirai is scheduled to make an announcement of his plan for the company.

Sony, which was worth $200 billion in September 2000 and brought out popular products like the Walkman, has currently slumped to $20 billion. In contrast, Apple is worth $591 billion and Samsung $170 billion.

In February, Sony said it expected to post a loss of 220 billion yen ($2.7 billion) in the year ended March 31.

Sony, which listed in 1958, said last month it was selling a chemical products division, accounting for some 3,000 people.

On April 1 it merged its Sony Mobile display unit, which had about 2,000 workers, with the small LCD panel businesses of Toshiba Corp and Hitachi Ltd into a new firm called Japan Display, Reuters said.

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