The job cuts account for 5% of Sony’s total workforce – which today sits somewhere around 170,000 – and marks the biggest workforce cut by an Asian firm so far in the global economic downturn.
Sony is also preparing to reduce its volume of manufacturing sites by about 10%. The firm will now delay plans to boost output for LCD TVs in Slovakia and outsource production of image sensor semiconductors. In total, the company aims to cut investment in its electronics business by 30 percent.
These measures are expected to be completed by March 2010.
"These initiatives are in response to the sudden and rapid changes in the global economic environment,” the company said in a statement, drawing on a number of events which have unfolded in recent months.
In late October Sony cut its profits outlook by 57 percent, an announcement the electronics giant followed by reporting a 72 percent fall in profits for the second fiscal quarter. Shares in the company hit a sixteen-year-low as November turned, while the firm’s native country Japan fell into a recession in part due to its crumbling export market and surging Yen.
"Particularly within its electronics business, where Sony has been most affected by the acute downturn in the economic climate, the company has already undertaken certain short-term measures, including adjusting production, lowering inventory levels, and reducing operational expenses," the company said, adding that it “intends to adjust product pricing to mitigate the impact of the appreciation of the yen, curtail or delay part of its investment plans, and downsize or withdraw from unprofitable or non-core businesses."
"Furthermore, Sony plans to realign domestic and overseas manufacturing sites, reallocate its workforce and reduce headcount."
It is unknown if the firm's new changes will affect the PlayStation business, and if this will be a final measure from Sony during the economic crisis.