A post over at NeoGAF has announced that the Financial Times has announced that Sony will announce details of its restructuring plan tomorrow. Last month the company called for the closing of five to six plants and cut 16,000 jobs in an attempt to save $1.1 billion a year. Analysts predict however, that Sony may likely need to implement more drastic measures to fight the decrease in demand for electronics as the global recession spreads.
“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.”
With more than 75% of Sony’s revenue coming from overseas and a stronger yen making Japanese exports less price competitive, it is unsurprising that in October, Sony cut its annual operating profit forecast by 57% and said profit would fall even further if the yen’s strength persists.
What this all means for us consumers I don’t know, seeing 16,000 people lose their jobs though is never pleasant.