Big changes are in store for Sony as part of a restructuring effort
Sony this week announced plans to close down 20 retail stores scattered throughout the United States, which will leave the company with 11 stores in California, New York, Florida, and Texas. The closures are casualties of a restructuring effort intended to help Sony remain competitive in an "evolving consumer electronics market," the company said. Thousands of job cuts are also in Sony's future.
The electronics maker expects the closures to result in about 1,000 job cuts. In addition, Sony previously said it would reduce its headcount by about 5,000 employees globally by the end of the calendar year.
"While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," said Mike Fasulo, President and COO of Sony Electronics. "I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."
Earlier this month, Sony announced the sale of its Vaio PC division to Japan Industrial Partners Inc., a Japanese investment firm. The company also said it would spin its TV business into a wholly-owned subsidiary, as it puts more focus on mobile products like smartphones and tablets.