Sony Poised to Announce Restructuring Plans

Sony Corporation is to release details this week on how it plans to restructure its operations in a bid to cut annual costs by USD 1.1 billion.

The specifics of the plan, which will include the closure of five or six plants and the loss of 16,000 jobs, will be unveiled today or tomorrow - but while the company must take drastic action in a difficult economy for luxury goods, with a strengthened yen hitting exports, the corporation is under political pressure not to make redundancies in Japan.

Sony is expected to announce losses of USD 1.1 billion in its full year report, its first loss in 14 years and the PlayStation division is under strong pressure on price points from both Nintendo and Microsoft.

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TheColbertinator3612d ago

Sorry to see so many lose their jobs.

Microsoft,Circuit City,Sony,Woolworths,DHL and several others have suffered or have simply given up in these tough economic times.

The only guy from Sony that should leave is David Reeves,head of Sony Europe.That man is incompetent

Helghast Slayer3612d ago

Around mine they call him an expendable asset.

Sasanova3612d ago

and why does noone speak openly about 1 billion dollar loss of replacing RRODs with Microsoft, let alone the 199 price cut, which surely made another billion or so loss, and the super failure of the Vista...where are the stats on these issues?

Helghast Slayer3612d ago

I wouldn't be surprised if Microsofts loses were beyond that. They have a tendancy to withdraw the truth from the public. I really wish they would release the actual loses and refurbished consoles sold to the RROD victims.

If Sony can be open to the public why not Microsoft?...Anyone?

militant073612d ago

because they are still making profit and big profit (I'm talking about Microsoft not only xbox)

Microsoft Corporation

Revenue ▲ US$ 60.420 Billion (2008)
Operating income ▲ US$ 22.492 Billion (2008)
Net income ▲ US$ 17.681 Billion (2008)
Total assets ▲ US$ 72.793 Billion (2008)
Total equity ▲ US$ 36.286 Billion (2008)

Sony Corporation

Revenue ▲ US$ 81.714 Billion (2008)[2]
Operating income ▲ US$ 3.745 Billion (2008)
Net income ▲ US$ 3.694 Billion (2008)
Total assets ▲ US$ 117.603 Billion (2008)
Total equity ▲ US$ 25.36 Billion (2008)

littletad3610d ago

Trolling? There's already been a projected loss of 1 billion since they first announced the extended warranty deal to 3 years. Dozens upon dozens of articles were submitted on this issue and it's not hard to find a new RROD news piece daily. And although Vista is not well liked by the gaming or techies community, it is not a failure. Stop bringing Microsoft up on any Sony subject article.

Zhuk3612d ago

Finally the day has come that the PS3 will be cancelled, this is the greatest day of my life as I have worked tirelessly for many years to assist in bringing about their collapse.

The Xbox 360 is finally free to provide consumers with the ultimate home entertainment device with an endless array of AAA features and award-winning exclusive titles and multi-platform titles that look and play best on the Xbox 360, winning every single comparison round that Eurogamer has posted.

I have purchased a bottle of Dom Perignon especially for this occasion, it shall be a pleasure to finally drink it.

Radiodread3611d ago

You're nowhere near as good as dark Snipa. Your sentence stucture and eloquence doesn't match his. You should retire.

JonahFalcon3611d ago

Analysts state that Sony needs to make even more drastic cuts, though Sony denies it will need to.

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.”