Nikkei Reporting 10,000 Jobs to be Cut at Sony

Sony’s financial problems aren’t news to anyone who has even a vague interest in the money behind the tech business. The company has lost substantial amounts of money over the past four years, with heavy losses in its television business. Recently, Sony admitted that its yearly financial report would include losses totalling around £2.1billion.

Recently promoted head of the company, Kaz Hirai, has admitted that there’s a sense of crisis and has been expected not to shy away from drastic measures to save the failing electronics giant.

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Now, Japanese newspaper Nikkei, is reporting that Sony could be set to cut 10,000 jobs across the company before the end of 2012. That’s around six per cent of their global workforce. It is unknown what impact this will have on the still relatively successful PlayStation arm of Sony but such sweeping job cuts are likely to impact all areas of their business.

It is also reported that the company’s seven executive directors who served up to the end of the current fiscal year, including the now departed Sir Howard Stringer, have been asked to return their bonuses.

Source: Reuters

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31 Comments

  1. I better start looking for jobs elsewhere…

    I hope we’re safe in the Pencoed factory. We atleast made profit in FY2011.

  2. “It is also reported that the company’s seven executive directors who served up to the end of the current fiscal year, including the now departed Sir Howard Stringer, have been asked to return their bonuses.”

    and

    “The company has lost substantial amounts of money over the past four years, with heavy losses in its television business. Recently, Sony admitted that its yearly financial report would include losses totalling around £2.1billion.”

    How did these execs qualify for bonus anyway????

    I wonder how many execs would equate to the 10000 plebs soon to be made jobless in terms of salary

    • I hope the 10,000 includes some of the top staff. The salary of one top boss would more than likely pay the wages of 10+ ‘factory’ workers.

  3. Sony has got a lot of work to do to recover from this, though there are signs that some of their efforts are working out for them. Sony’s new ‘sans Ericsson’ mobile communication division is doing relatively well, with demand outstripping supply for its Xperia variants in the UK.

    • the design of those two Android tablets was a real positive sign for me too. The folded magazine one and the split screen one. It was like a return to Sony’s slightly insane but innovative design of the ’90s.
      A long way to go, for sure, but hopefully they’re on the right path. Not that anyone who’s job is cut will care.

      • I just ordered the tablet s feels perfect to hold.

      • that’s the magazine-like one, isn’t it? Jas-n has one, I think. Seems like a great bit of design to me, although it being Android and not at the top of the power-range for Android tablets puts me off slightly. That’s not Sony’s fault though.
        That and the Transformer Prime (which is the powerful Android choice) are the only tablets that make me think about trying something other than the iPad.

      • that is the one CB I was going to get the prime that was the main reason I sold my ipad 2 plus the new one coming,but the Sony one was £290 could not resist it love that I can use it as a remote as well. when it comes I will let you no what I think of it CB.

        sorry about my terrible grammar TSA.

    • Hoping for another Xperia play, but with the sort of power to outstrip iPhones/etc.
      My iPhone 4’s nice ‘n’ all, but the general lack of gaming and the annoyingly small(er) screen puts me off buying another.

  4. I think if Sony continue to lose profits, they may have to shut some parts of their company down in order to focus on the more profitable parts. But hopefully, it won’t come down to that.

    Do Sony still make a loss on every PS3 sold as i know the fat models caused them to lose some profit on every unit sold due to manufacturing costs?

    I’m sure that if your company is in trouble, you don’t give out bonuses to the people who were supposed to make sure it would not happen.

    • As far as I know, the PlayStation division of the company is the only one that is actually making money.

      I think PS3 profits started about 2 years ago.

    • Sony stopped making a loss on each unit a while ago. Think around 15 months ago.

      • Not sure profits from the second half of its life will be enough to pay back the losses for the development & first half, so overall, it may not possibly have been that great.

        As a tool for getting HDTVs in people’s homes… its failed as Sony have gone backwards in the TV world where Samsung & no-brand Chinese makes dominate and as far as launching 3D in people’s homes that’s largely bombed too & even if it did work Samsung & the Chinese cheapos would be the principle beneficiaries.

        Sony’s future is intrinsically linked to services like PSN/SEN/Crackle/PS Suite & rest becoming a viable ‘go to’ alternative to iTunes+AppStore for the masses away from its bubble of fans on this website. However they still think they’re a manufacturing company so I’m not sure the whole company has totally got it yet.

      • Games consoles have played a huge part in getting hdtvs and more recently 3d tvs in peoples homes, and blu-rays probably would of failed if it wasn’t for the ps3.

      • PS3 has played a huge part in 3DTVS HDTVS & Bluray Sony TVS are great they just cost more.

  5. Sony is an unfocused business. Give it 10 or 15 years and Samsung will probably be in the same position.

    • I don’t think so. They separated their hugely successful screen business from their main business as a dedicated branch. That’s the complete opposite of unfocused.

      • Agreed, but I think Samsung lack true innovation. Sure, their tech is always ‘ahead’ of the competition, in terms of mobiles and TVs anyway, but overall I think they’re going to become over-confident and lose their momentum. I think the CEO or someone close even said they weren’t “Threatened” by the thought of the Apple TV…
        I’ve got a cheap Samsung LCD…it’s awful.

  6. all Sony needs to do is concentrate on the playstation brand and make sure that dont crumble cause thats whats bringing in profits for them.

  7. £2.1 billion loss?
    It’s crazy to think a company which sells luxuries like Sony do can take that kind of loss and not shut down.
    Then again, when the likes of Apple have $100 billion in their bank accounts (what do they earn in interest alone?), it goes to show how crazy money means nothing in this kind of business.

    • Sonys has vast assets, such as music and film.

  8. Expect the Vita to be silently dropped as the Go was before it. This is unavoidable.

    • I’m pretty sure the playstation brand is profitable.

      It’s most likely the TV side of the business which isn’t doing so well along with camera’s/walkman’s.

      Vita has been out just over a month what’s unavoidable is your trolling :)

      • Sony’s camera business is doing fine, they manufacture the sensors that go into iphones and a bunch of other smartphones.

    • Doubt it.
      The Go wasn’t a new console, just an alternative form factor of the PSP, with less features.
      Like the Game Boy Advance Micro, a stripped down version of the GBA which came out late in it’s life cycle and didn’t do well.

      Which had no bearing on it’s successor, the DS.

      The Vita is whole different console to PSP, hardly unavoidable that it will flop.

  9. Stick a ps3 board into a Bravia & sell it as an all in one for a start ;)

    • They did something similar with a PS2 Bravia…but it was well into the PS3 lifecycle so didn’t do well. It’d be cool to have that, but I think the market’s small, since most people have a TV, and would rather buy the PS3 to go cheaply with it…

  10. The only superior products Sony make is the PlayStation’s. Every other product of theirs has a much better and cheaper product from their competitor.
    Bravia TV’s can nowhere get the picture quality, viewing angles, contrast ratio and black levels of a Panasonic Plasma Viera.
    Walkman has clearly lost to iPod. Cameras have lost to Lumix. Sony Xperia lost to iPhone etc
    Although the Vaio laptops must make profits but then again they can go into the MacBook price range.

    • Sony had exceedingly strong product design in the 80s and 90s but everyone caught up. They also became complacent and innovated (internally) at a snail’s pace. Hell, we’re still seeing restructuring that’s been years coming.

      Anyway, hopefully they’ll look at what’s the least profitable division and move bravely to sell it off or shut it down. As harsh as that sounds it might need to become a business reality. So many blue chip companies spread themselves too thinly and then have to refocus on the core profitable products to stay afloat.

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