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Sony to cut 8,000 jobs, slash $1.1 billion in costs

Japanese electronics maker Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) said it will cut 8,000 jobs, scale back investments and pull out of unprofitable businesses as part of restructuring efforts to shave 100 billion yen ($1.1 billion) in costs.

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happyface3268d ago (Edited 3268d ago )

not good news for the money losing ps3

doesn't look like they can afford a price cut

"will cut 8,000 jobs, scale back investments and pull out of unprofitable businesses "

the ps3 is an unprofitable business, are they thinking of pulling out?

Cyrus3653268d ago (Edited 3268d ago )

Umm if you followed their last Q report, the PS3 and more specifically their Game division turned a profit....(I think it's been 2 quarter now they've turned a profit).

Looks like their tV market is safe since they are making money on that, and as well Cellphones.

Probably means they'll be out of the mp3 device, as they haven't really put out a good quality mp3, and it's ultra competitive.

What it could mean though is, there not gonna spend alot of R&D on tech (like they did on the cell) which means they'll likely farm out the technology for the next Playstion if they decide to go that way. Might mean they go with lesser tech, or really on IBM/Toshiba to come up with the advances in the cell or future cell versions.

pwnsause3268d ago

didnt their cell phone market not do well last quarter?

Cyrus3653268d ago

pwnsauce, well not sure last quarter, but generally their cell phones have done really well, but maybe lately with blackberry, and the iphone, not as well.

BrianC62343268d ago

Since gaming has helped Sony make it through tough times for years now there's no way Sony kills off the PS3. They aren't losing money on the PS3. Right now I believe they're breaking even on the cost of the PS3. Sony is a huge company with a lot of divisions.

BrianC62343268d ago

"Probably means they'll be out of the mp3 device, as they haven't really put out a good quality mp3, and it's ultra competitive."

I wish Sony would do something already about a great MP3 player. My Nano isn't holding a battery charge very long now so it could be time to buy a new player. Sony needs to get with it and design a great player that beats the iPod. And include good software.

Danja3268d ago

Why do ppl think this has to do with Sony's Game division ? they're games division actually made profits last Quarter..

Sony is a huge corporation that makes just about every entertainment device....so...obviously with the crappy economy this was expected...

Why o why3268d ago

you are not allowed to exercise the use of common sense. Sony are in fact pulling out.......;)

n4gzz3268d ago (Edited 3268d ago )

I think, I read on CNN that they are killing Chinese and some European base Factory of VHS player and some other outdated stuff.

edit: well, there's 1.1 billion dollars to support ps3 price cut next year :D

Danja3268d ago

yes there actually was an article on N4G a few days back stating Sony was closing a few factories due to low global demands for Video Cassettes/VHS

Death3268d ago

http://markets.on.nytimes.c...

"In the Game segment, operating loss decreased significantly year-on-year primarily due to PS3 hardware cost reductions and increased sales of PS3 software, as well as strong sales of PSP hardware"

It's tough times for everyone in todays economic recession. You can't blame todays financial problems on the PS3 since we are in a global recession.

-Death

PAPERCHASER03963268d ago (Edited 3268d ago )

Troll fanboy be gone... Microsoft just not long ago made major cuts specifically within game developers in an effort to restructure finances but doom and gloom statements such as yours are few and in between so how do you even type with those little troll hands the crap you did. SONY and the PS3 are doing fine if you haven't noticed most businesses even large corporations are scaling back because of the economy.

Look at the number of employees they have which is 170,ooo plus so tell me what percentage is 8,000 is anyway

prowiew3268d ago

Damn. 8,000 jobs.
Probably they will cut more jobs in the future. The competition is getting tougher, especially where Sony dominates in the past, electronics. Companies are offering great quality alternatives to sony products a lot more cheaper. And in these tough times, thats where people are going for. Why buy a bravia when you could get a Vizio with same specs a lot more cheaper. Why buy a Vaio when you could buy a hp or acer waaay more cheaper. Why buy a sony mp3 player where you could get an ipod at same price.
Gaming division? Probably they will do fine.

mirroredderorrim3268d ago

Happyface, your ignorance is astounding. I saw this story on Bloomberg before it was even posted. I tried to find the story on the net, but for the life of me, I gave up caring.

Anyway, this move is motivated by the financial crisis.. You know, Happyface, that thing you're too young to be involved in at the moment?

Mainman3268d ago

Everybody thinks the PS3 is losing money. I personnally dont think so.

Yeah, they are losing money with every PS3 sold (maybe not anymore, dunno). But they are gaining back the money lost with games sold and Blu-ray movies sold.

The money gaining back by Blu-ray sold wont show up in the Sony Game Division profit, but Sony will make a profit via Blu-ray royalties and Sony Pictures.

Even if you see Sony Games division had a loss, they compensate for this loss through other Sony divisions thanks to the PS3.

You guys may be doubting the PS3 is gonna get a price-cut soon, but I think they wont change their strategy when it comes to the PS3. What I am trying to say with this is, the PS3 will get a price cut but not this year though. I guess Sony is happy with how the PS3 is performing currently.

There was a rumour that the PS3 would get a price-cut in March. I think this rumour is true. Maybe it wont get a price-cut in March, but we will probably see a price cut in that time frame, probably March, lol.

gambare3268d ago

@happyface

I never had the idea that Sony relies only on their PlayStation brands for their entire economy, it's like saying that microsoft relies only on the 360 brand to keep themselves ahead. The economy is BAD and it's a worldwide effect, some companies had a nice money buffer to handle this like microsoft, some others don't have that buffer, but... I guess the 360 fans are economy experts.

Megatron083268d ago

"pull out of unprofitable businesses"

blu ray will be dead by the middle of 09 if not sooner

ravinash3268d ago

What are ya! A HD DVD owner?

BlueRay is doing really well, despite being in a recession.
Sony would no sooner throw out the golden egg (BlueRay) than it would the goose that layed it (PS3).

likedamaster3268d ago (Edited 3268d ago )

@Brian

Sony were never that successful with mp3 players they were never even in the top 3. Sony was the most successful with televisions but Samsung beat them out for 1st place years ago. Don't get me wrong their "devices" and "LCD's,tvs" are feature rich but overall quality is poor compared to other products in the same pricerange. They are rather successful with their cameras though, well at least I think they have the best out there. Sony though, is an extremely innovative company, can't take that away from them, but innovation doesn't always equal success and profit.

novcze3268d ago

8,000 jobs is like 4% of their total work force, not big deal

kunit22c3268d ago

I have always thought of Sony as an untouchable business that woul dnever fall and if it did things would have to be going VERY bad for everyone.. i guess i was wrong :P could this be the begining of the end for sony? i dont mean it will end this year or next but maybe in the next 5-10 years. I hope not because i buy everything from them. and of course this means no ps3 price cut.

cherrypie3267d ago

Clearly bad news for the PS3.

They'll have to stop writing games only to see them loose money.

They'll put the PS3 on coast and wait until the PS4 to hope to recover.

Expect the PS4 to be almost the same as PS3, and be here in 24-28 months.

disrupt3r3267d ago

Did anyone actually realize that this story is about Sonys electronics division? This has no effect on the Sony Computer Entertainment division.

kunit22c3266d ago

disrupt3r you are wrong. Have you ever heard of a chain reaction? Even if Microsoft had these problems it would effect sony but yet even when Sony has it you think it wont effect another division? No, it will. You see tha part that is getting the biggest hit in this artical is the one that gets them most of their money. You see the ps3 doesnt give them most of their money that is clearly obvious by its sales. So they have to mainly rely on electronics such as HD TV's and what not, but if that division fails I could see sony's other divisions taking a major hit too, and if you cant see that you are just plain stupid.

+ Show (20) more repliesLast reply 3266d ago
TrevorPhillips3268d ago

yowzaa thats alot of jobs and money to cut off

BrianC62343268d ago

That is a lot of jobs to vut but check out what I just found regarding Sony and their worldwide staff.

As of the end of fiscal 2007, the total number of Sony Group employees was approximately 180,500. There were significant increases in employee numbers in manufacturing bases in East Asia and Eastern Europe accompanying expansion of the electronics business. As a result, Sony recorded a year-on-year increase of approximately 17,500 employees.

mesh13268d ago (Edited 3268d ago )

good i want them to go bankrupt so i dont have to listen to the trolls on the net not that i hate sony but i hate sony fanboys haha they are infedel swines .

edit hahaha look at monkeys they fell for the bait btw next gen gaming is getting boring ps3 + xbox inc but facts are xbox has won this gen .

Raz3268d ago

Ouch. Expect little or no innovation from Sony for a while to come - they're busy with damage control from economic fallout.

Might mean Home will remain a more or less useless addition to the XMB...which sucks, considering its potential, but it might also mean that stupid PS3mote idea will stay on the drawing board where it belongs; so I can't say it's ALL bad news.

3268d ago Replies(6)
TrevorPhillips3268d ago

This is for worldwide, thats very bad news

TrevorPhillips3268d ago

i think there Sony's cell phone market did go well just that Motorola and others fell down this year

pwnsause3268d ago

well the Xperia did release this quarter, so I should believe that Ericsson division got some sort of boost.