Sony announced Tuesday it's cutting 5 percent of its full-time workforce, in addition to a sizable chunk of contractors, and delaying investment in some factories. It's all part of the Japanese electronics giant's plan to save money amid the troubled global economic environment.
The total annual savings will eventually amount to $1.1 billion by early 2010, the company says. But will it be enough? Sony's current struggles are well known, and it's not clear that cutting just 16,000 positions and a few factories is going to get the unwieldy behemoth back on track.
The company is huge, and it has had trouble finding cohesion among its brands and products. And with increased competition among all product categories, the Sony name just isn't the same as it was even five years ago.