Sony Cutting 16,000 Jobs
PrintMore bad news for big business, as Japan's Sony Corp. announced plans to cut 16,000 jobs, cut back on investments, and pull out of businesses all in attempt to save $1.1 billion a year. The job cuts rank as the biggest ever announced by an Asian company so far in the economic crisis, but some analysts are saying it might not be enough.
"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, a fund manager at Daiwa SB Investments. "Sony doesn't have any core businesses that generate stable profits. After the workforce reduction, the next thing we want to see is what is going to be the business that will drive the company."
Sony already trails Apple's iPod in portable music and the company is losing money on flat TVs. But it could get even worse. Sony acknowledged the market may force its hand at making equivalent cuts from its videogames and movie businesses, saying that the situation was "under simultaneous review."
To weather the storm, Sony said it has also raised European prices for its electronics products. And yes, that could mean higher Blu-ray player pricing, but not for PS3 consoles.
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Baer
December 10, 2008 at 3:55pm
So there are others like me that stoped buying anything SOny. I will never forgive the rootkit and now the Securom DRM along with everything being propriatary. There are so many other choices and it looks like many of us are making those other choices.
lunchbox73
December 10, 2008 at 11:20am
The other day I was looking at blu-ray players but I decided they just don't cost enough. I'll wait until they go up $100 or so and THEN I'll buy one for sure.
Talcum X
December 10, 2008 at 10:34am
Making the target customer base even smaller is not the answer. People have less expendable money to buy non esential items like home electronics. So by increasing the price, even less people will buy them. Best to sell many more at less profit than very little with more profit.
***********
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skhills
December 10, 2008 at 10:17am
Sony, try cutting back on your addiction to all things proprietary.
QUINTIX256
December 10, 2008 at 2:58pm
... before they do anything of that sort. In fact, they'll admit that their precious P.O.S. 3 is a caricature of every misconception of the original XBOX before they do anything like that.
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