Sony Losses Continue

17 Apr

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Sony announced that its losses this year would be worse than it had expected, with the company expecting to lose $6.4 billion in 2012. Sony hasn’t turned a profit since 2008.  In response to the announcement Sony’s share price closed down at a quarter of its value a decade ago.
New CEO Kazuo Hirai laid out plans to get the company back on track focussing on three market segments: digital imaging, games and mobile. “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.”
Sony stated that it intends to ‘realign the business portfolio and optimize resources’ – restructuring headquarters and subsidiaries.
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.
The total number of layoffs includes staff expected to end up part of external companies and subsidiaries as Sony realigns its corporate structure, and will “consider various measures to secure continuity of employment for employees at their new destinations”.
The restructuring is expected to cost ¥75 billion yen during FY12, but Sony is targeting sales of ¥6 trillion with an operating income margin of 5% in its electronics business, in FY14.
A recent New York Times article, “How the Tech Parade Passed Sony By” lays out the decline of Sony as a global tech leader.
Does this have any impact on Sony Broadcast and Business Solutions? TIme will tell but it is clear that cost cutting and efficiency, and focusing on key market and product areas is of paramount concern at Sony HQ.
A related report by HDTV Magazine also lays out the recent woes of Sony —  The Incredible Shrinking Sony

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