Sony cuts 16,000 jobs and reports net loss

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Sony is expected to report a $2.9 billion loss this year for the first time the company has reported an annual loss in over 14 years. The company predicted a $1.65 billion profit for the year, and will likely report a $1.65 billion loss for the fiscal year.

Two television plants will be closed due to sliding demand for their product in Japan, where 2,000 employees will be let go. Sony also plans to reduce the number of manufacturing sites by 10 percent, from the 57 manufacturing facilities worldwide. They also hope to reduce investment in the electronics business department by 30 percent, over the next fiscal year, ending March 31.

Sony, like many other companies, including Microsoft, who plan to cut 5,000 jobs, has been struggling during the economic meltdown. Sony has also announced they will be cutting 8,000 jobs in its electronic business departments worldwide, as part of a move to help eliminate costs. The company plans to eliminate an additional 8,000 employees that are mostly temporary and contract workers. Sony's full-time global workforce totals 160,000 employees.

(1 reply) #1 excalpius on 22 Jan 2009 - 18:23

When Sony won the bluray vs hddvd war, they really screwed themselves by jacking the prices back up on DVDs and players. The only reason adoption was accelerating as because Bluray media and products were becoming competitive with normal DVD products, so it made migrating from one platform to another more attractive to more cutting edge consumers. If they had kept the prices down, adoption would have stayed strong through the past year, and bluray discs would have been a standard/staple buy right now instead of a borderline luxury. This is why Sony finds itself in the ****** today.

#1.1 iamwhoiam on 22 Jan 2009 - 19:41

That's Sony for you. Always has been, always will be. They've been going down hill for the past 15 years or so.

#2 xXTOKERXx on 22 Jan 2009 - 18:23

Don't count my chickens before they hatch as the headlines tomorrow will probably contradict this.

But this is why they need to be accurate and conservatice on forecasts, reduce profits etc.

Remember when they just cut there forecast down a little but profits stayed high?

Well panasonic stated same costs out going but reduced profits and that's why they are still fighting strong

#3 +stifler6478 on 22 Jan 2009 - 18:42

If Kaz Hirai isn't one of those 16,000, they're still doing something wrong.

-Spenser

#4 ahhell on 22 Jan 2009 - 19:04

No kidding. That guy is jackass.

#5 thealexweb on 22 Jan 2009 - 19:49

Ouch!

#6 KeR on 22 Jan 2009 - 20:11

Wow that's a real bad loss.

#7 C_Guy on 22 Jan 2009 - 20:29

Don't worry though! They have a start on the PS3's "Ten year plan".

The ONLY Sony product I love is my 10-year old Discman which still sounds great. Since then I've lost almost all interest in Sony.

#8 Xero on 22 Jan 2009 - 20:54

Can't wait to hear Sony's PR talk about this one and tell us how great it is that now since there are less employees they can release better software/hardware!

(2 replies) #9 Melfster on 22 Jan 2009 - 21:36

I don't really see a need for Blue-ray unless the cost of the players come down to $50. I don't know anyone who really wants one.

#9.1 lylesback2 on 22 Jan 2009 - 22:10

Melfster said,

WHAT!? Boxing day was crazy for blu-ray players here. They had a stock pile on the floors, and days later, all of them were gone. I seen people everywhere shopping for blu-ray players and media.

#9.2 Peas on 23 Jan 2009 - 01:46

lylesback2 said,

... and I haven't personally seen anyone buy a BR player. Does one person's observations make it a universal truth?

(1 reply) #10 Akaruz on 22 Jan 2009 - 22:00

well its not that much to be honest

Sony has also announced they will be cutting 8,000 jobs in its electronic business departments worldwide, as part of a move to help eliminate costs. The company plans to eliminate an additional 8,000 employees that are mostly temporary and contract workers.

The temporary and contract works is as simple as not renewing their contract and should be the ones that are almost over

Ms did 5k jobs , Sony did 8k

#10.1 +stifler6478 on 22 Jan 2009 - 22:04

Akaruz said,

well its not that much to be honest

The temporary and contract works is as simple as not renewing their contract and should be the ones that are almost over

Ms did 5k jobs , Sony did 8k

Last time I checked, 8000 is still a lot.

-Spenser

#11 xXTOKERXx on 22 Jan 2009 - 22:48

^ lmao

(1 reply) #12 Peas on 23 Jan 2009 - 01:45

It's because BlewRay is doing sooo well!

#12.1 +Chrono951 on 23 Jan 2009 - 05:27

Don't forget the PS3 with its stellar sales.

#13 madhopsman on 24 Jan 2009 - 18:45

I hope they crash and burn. I hope this is the beginning of the end for them. Screw 'em ...

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