Sony's latest round of spending cuts and layoffs for its electronics business didn't get the enthusiastic reception the company might have been expecting. On Dec. 9, Sony announced plans to lay off thousands of employees, delay spending on factories, and streamline its supply chain for semiconductor chips and flat-screen TVs. All told, the company expects to eliminate more than $1 billion in expenses over the next 15 months.
But analysts have attacked the plan for being short on details. "There's nothing in the announcement about the speed at which the company will carry out the cuts or how positive they will be for earnings next fiscal year," says Mizuho Investors Securities analyst Nobuo Kurahashi.
Another thing that strikes critics as odd: Sony has yet to revise the ambitious three-year agenda of financial targets and product launches that it announced with much fanfare less than six months ago. So far, the company is sticking by its goals for a return on equity of 10% within three years, from 8.6% last year. (Analysts use ROE to gauge how much profit a company is making with the money it has raised from shareholders.)