Report: Sony to axe 10,000 jobs before end of 2012

By Lee Kaelin on April 9, 2012, 10:00 AM

Japan’s largest newspaper, the Nikkei, has revealed that Sony Corporation plans to axe around 10,000 jobs globally over the next year as part of a restructuring effort led by their newly appointed president Kazuo Hirai, who took over the role as CEO from Sir Howard Stringer on April 1.

The report, which does not cite any sources, suggests that the six percent drop in workforce will be spread over the development, manufacturing and management sectors of the company. That figure takes into account the previously announced plans to cut 5,000 jobs by the spin off of several non-critical businesses, which include their chemical operations facilities and a small to mid-sized LCD production plant.

Nikkei also reports that seven senior executives at the company, including chairman and former CEO Sir Howard Stringer will be asked to return any bonuses. The news comes on the back of estimates for the fiscal year that ended in March, which the games console maker is expected to publish losses of approximately $2.9 billion when the reports are announced in May.

It is not clear if those employed in the businesses they intend to spin off will be able to keep their jobs, but the new CEO has hinted on several occasions that job cuts would be very likely, and no area of the company is considered off limits.

At the end of March, Sony employed 168,200 workers worldwide. The reduction in the workforce, as well as the spinning off of various businesses is intended to improve operational efficiency whilst accelerating Sony’s shift towards mobile devices, having purchased Ericsson’s share of the Sony Ericsson joint venture.

Sony refused to comment, other than saying that newly appointed CEO Kazuo Hirai will be addressing the media about his corporate strategy next Thursday during a press conference at the firm’s headquarters in Tokyo.




User Comments: 9

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3DCGMODELER 3DCGMODELER said:

Bummer...

"Nikkei also reports that seven senior executives at the company, including chairman and former CEO Sir Howard Stringer will be asked to return any bonuses"

Raswan Raswan said:

3dcgmodeler said:

Bummer...

"Nikkei also reports that seven senior executives at the company, including chairman and former CEO Sir Howard Stringer will be asked to return any bonuses"

Yeah, asked. Wonder if anyone will actually return them, since they probably aren't required to. Still, probably the first intelligent move from Sony since the PSN hack last spring.

amstech amstech, TechSpot Enthusiast, said:

Sony wanted to be too controlling with the PS3, and they paid the price.

The PS3 has cost them billions in expected revenue they've arleady dished out on top of last years hacking.

Google is going to experience the same backlash in a couple years with some of the decisions they are making now.

You can only ride your name for so long.

Guest said:

They should "axe" the whole company instead

slamscaper slamscaper said:

Sony has done this to themselves. The PS3 could have been an epic console if they would have embraced the community instead of treating everyone like thieves. They also didn't put enough effort into making the PS3 platform friendly to developers.

Guest said:

amstech, if you think PS3 is responsible for Sony's failures, you are ignorant. You should educate learn some information before spouting nonsense as fact:

http://www.sony.net/SonyInfo/IR/financial/fr/highlight.html

The Game division (excluding PCs) - PS Vita, PSP, all Playstation consoles and all game software sales) was just 53.8% of Networked Products and Services revenues stream. That revenue stream is just 20.8% of the entire company. So the entire console gaming division is just 11% of Revenues for Sony.

PS3 is likely just 5-6% of the company.

Sony's troubles stem from them failing in major segments of its electronics business. Very costly join venture with Samsung for TVs, not doing well with digital cameras, sound systems, laptops, etc.

PS3 is a drop in the bucket compared to everything else that Sony sells.

Guest said:

i hate ****** who think the ps3 custom firmware was for other purposes, it was made for pirating games nothing more

captaincranky captaincranky, TechSpot Addict, said:

Japan’s largest newspaper, the Nikkei, has revealed that Sony Corporation plans to axe around 10,000 jobs globally over the next year as part of a restructuring effort led by their...
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captaincranky captaincranky, TechSpot Addict, said:

Japan’s largest newspaper, the Nikkei, has revealed
Could we get this coding error cleaned up. This HTML doggerel
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