Network now...NEWS
Sony Plans to Extend Cost Cuts to $2.8b
Sony has announced that it will be making further expenditure cuts across its businesses in a bid to save the company $2.8 billion.
The announcement immediately followed the firm’s projections that it would lose $1.68 billion for the fiscal year.
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.
Contact Us / About Us / Advertise With Us / BeltwayBlips / TechBlips / MassiveBlips / GamerBlips / FAQ
Subscribe To Edge Magazine / Corrections / Terms & Conditions / Privacy Policy
Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
Subscribe To Edge Magazine / Corrections / Terms & Conditions / Privacy Policy
Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
Like We've been Sayin All Along, Remake Final Fantasy Vll, U'll be Workin Three Shifts To Keep Up The Demand For New PS3 Consoles.
Has someone stolen Kim's logins? That's actually quite a good post.
Say's Kim's alter ego.
Sorry!?! Your logic for this being?
The only "logic" being you're not on the Sony bandwagon. :)
I was also surprised that Kim finally offered an insightful post that didn't sound like an official press release. Old-School Japanese business philsophy is precisely what's sinking Sony.
Gotcha, just checked von labia's posts, fully paid up member.
Honor
Something that is very important to the Japanese culture is "honor." In Japan, it is a part of the culture to assume that once you are hired, it represents a lifelong employment opportunity. It really is a dishonorable action to fire an employee in Japan. Having your job "cut" in Japan is similar to being told you were on the team, telling all your friends and relatives how happy you are to be on the team, and then being told you are "cut" from the team.
People of Japan really will hold it against Sony for doing a dishonorable action like this. One minute Sony is lying to corporate shareholders, the next minute Sony is telling loyal employees they are "cut" from the team.
That particular expectation has been broken many times before when Japan's "bubble" popped during the 90's. While the hope is still there, there's not a rock-solid confidence in it any more. Sony's not the first Japanese company to lay off, and they won't be the last.