Sony had initially prepared to save $1.1 billion through a number of restructuring measures; savings which many analysts thought would be too little.
Stringer admitted in a news conference at Sony’s Tokyo headquarters that previous cost-saving measures were indeed too slim, and announced that the company would move its TV production businesses to one plant, implying that either the Ichinomiya or Inazawa factories will close (many analysts claim the Ichinomiya’s plant is far more likely to close than the Inazawa).
Also as part of the cost-cutting measures, Sony’s CEO Sir Howard Stringer says he will take a pay cut along with other executives and managers. The company is still declining to comment on reports that it is about to axe 2,000 jobs from its workforce.
Sony’s shares closed down 2.6 percent ahead of the news conference.
Full details of the restructuring plan are expected to emerge later today.