More 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.