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Sony Not Recession Proof? Cuts 16,000 in Biggest Japanese Cut

Gamezine:

"Today brought the Reuters report that Sony were cutting 8,000 jobs in their electronics sector and scaling back unprofitable businesses to free over $1 billion in costs. However, the cuts are higher than was first thought."

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gamezine.co.uk
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Omega43209d ago

Damn, this recession couldnt of come at a worst time for Sony

die_fiend3209d ago

You must mean couldn't HAVE come. And yeah, it couldn't...360 is poised for huge sales at the moment. People juts don't have those sort of bucks for a console that doesn't have the best library of games.

Capt CHAOS3209d ago

You know you're going to get flamed for that..

'...doesn't have the best library of games. '

3209d ago
acedoh3209d ago

As some of you may be implying. SONY is obviously a very large company. The 16k is obviously a lot of people but it may actually be a relatively small percentage of the companies work force. Hopefully this won't effect their gaming division too much since that's their bread and butter.

monfa3209d ago

"Damn, this recession couldnt of come at a worst time for Sony"

Did it come at a good time for anyone ?...

Kuest3209d ago

during this finance market crash. Someone out there is making a killing, and I'm losing my patriotism.

The word makes me sick.

gambare3209d ago (Edited 3209d ago )

The gaming division wasn't affected, however the electronic side (TV, computers etc.) was affected, the recession hits hard and it wasn't the only company affected.

@1.3

you clearly can't remember the N64 nor the gamecube, they weren't so successful but they did good, just like the PS3. It's sad to see a kid being happy for the loss of the jobs of others, I hope your parents never lose their jobs.

ultimolu3209d ago

Um...newsflash. This isn't just affecting Sony.

Dread3209d ago (Edited 3209d ago )

I read in 1up.com just now that 16,000 employees represent only 5% of Sony workforce. So relax with the doom and gloom predictions.

that said. I would be more concerned with the Playstation 3 price tag. We could argue till we die if the price tag is justified. the real issue here is that with this economy most consumers (not gamers like us) might find it hard to justify the expense. thus the Playstation 3 could have a tuff time in 09 regardless of all the great upcoming exclusive.

also, I think that people with DVD players will find it hard to justify buying a blue-ray player. It just is not that much of an improvement to justify the upgrade in this economy.

so this is a two prong problem for Sony.

The recession could not have come at a worst time for the company. Things are finally picking up in the game and online departments but with little money in peoples hands they might just stay with the cheaper options provided by MS and Nintendo.

notwithstanding, I do not think that Sony will suffer that much. the games will keep coming..

gw4k3209d ago

In another topic, a misguided reader became upset when there was discussion of Sony possibly scaling back its gaming division. You have to understand, any company has to focus on profits, not losses. So if Sony is looking at ways to save money it really is a good thing. If the go ahead and cancel something that wasn't really taking shape I think that is better than releasing a half-assed product.

You will continue to see cuts on all fronts, Sony, Nintendo, Microsoft.

Now, I have to say that I love N4G, what a killer site. What I dislike is that the Sony Fanboys are here in force. I have a PS3 and I want it to be the best system out there....but come on people, the library of games has just started and the hits are limited! The 360 has been out longer and has a bigger selection and really, they have more killer hits. Not only that but they are taking Sony's gems as well.

Not to mention that the online service for the 360 is better. Home may change that and with updates Sony may get caught up. I have been playing Home for weeks now and it is boring. I see the possibility and it is great.

So with that in mind, don't disagree with others because someone says something about your favorite company, disagree if it is false.

himdeel3209d ago

...in-bred moron to think that any company is recession proof. I absolutely hate the title of this article and think it's ridiculous.

Finally to imply that this job cut is all because of the PS3 is just plain dumb. SONY is much more than the PS3 much like Microsoft is much more than the 360. I'm frustrated by this article...

chaosatom3209d ago (Edited 3209d ago )

Exactly.

Why in the world would Sony be recession Proof?

I couldn't agree with himdeel more.

agmsd3209d ago

Even though I'll be loyal to my PS3 console till I see the games I'm promised, and the promises are just being yield out.

Seraphim3209d ago

One question.

Does anyone not recall that Sony has been wanting to scale back on unprofitable businesses for a year or two now? Even last year they were talking about bailing out of some of their less favorable areas of the market. Pertaining more to electronics divisions than SCE...

XxZxX3209d ago

if you think this is bad, check out General Motor.

+ Show (12) more repliesLast reply 3209d ago
panasonic233209d ago

just pay them with hentai they be very happy

Darkseider3209d ago

The job cuts are in the less profitable depts. and growth limited. Sony recently closed two VHS plants in asia. Also a note from the article

"To clarify, the 8,000 job cuts are in reference to contract workers in the electronics division."

This leads me to believe that the job cuts are coming from the consumer electronics division. All in all not good but SCE will remain intact.

Darkseider3209d ago

A disagree? Huh? Not that it matters but I am quoting the article and it states that contract workers in the electronics division is getting the axe. Generally speaking contract workers are not full time Sony employees but ones contracted to in a particular division based on forecasted growth. No matter how you look at it a job cut is a job cut but these are not internal permanent Sony employees or so the article states. So like I said the Playstation division as well as SCE as a whole will stay intact as it is Sony's most profitable groups.

Gothdom3209d ago

maybe the disagreer wanted VHS to prevail over Blu-Ray.

CrippleH3209d ago

Japan economy was hit hard by the recession. No shock here.

A lot of people stop buying electronics and that led to a recession for Japan. That's what CNN reported.

40cal3209d ago

This always kills Japan. When the U.S. dollar looses it value (like it has been over the last year or so) the Yen gets stronger. Now, Japan exports a ton of products to the U.S.

So, as the Yen gets stronger it cost more to produce products, then you export them to a weaker dollar so you make less profit. See how that works everyone.

Xbox Street Gang3209d ago (Edited 3209d ago )

Microsoft had to cut about the same amount AND go on a spending freeze AND close down their game studios because of their fledgling OS business and their entertainment division still trying to recoup loses on the XBOX 1 and RROD.

What was it...? 9 billion dollars in the black?

I would worry about the future of Rare if I was MS. None of their "mediocre" games released this year have even cracked 400k...I guess 360 gamers don't buy games...

Little Big Planet is at 1 million after a month. So, I guess PS3 owners don't buy games...

Resistance 2 is at 600k after 3 weeks in NA and 1 week in EU. So, I guess PS3 owners don't buy games...

JOLLY13209d ago

Wow, that is a ton of profit. Now that would have sucked if that was 9 Billion in the red.

lloyd_wonder3209d ago

Didn't MS have to put like 3 billion dollars away for RROD, alone?

lmao

JOLLY13209d ago (Edited 3209d ago )

it was 1 billion, but hey who's counting. LMAO!

You see Microsoft already had their 1 Bil issue, now it's sony's turn. Microsoft came out of it alright, maybe sony will also.

40cal3209d ago

I think he ment to say "in the red" and sorry bro but the RROD coverage cost Microsoft 3 billion not 1.

+ Show (1) more replyLast reply 3209d ago