After four consecutive years in the red, Sony are now taking drastic action.
After the recent appointment of Kazuo Hirai as CEO of Sony, they have taken the decision to axe 10,000 jobs worldwide – or roughly 6% of its workforce. Most of these jobs are understood to be coming from its LCD and Chemical divisions, both of which Sony plan to sell on as going concerns to the state-run Development Bank of Japan.
With a net fiscal loss from 2011-2012 of 220 billion yen ($2.7 billion) and increasing pressure from its competitors in various markets, the next fiscal year looks to be another heinously expensive one for Sony. Kazuo Hirai is expected to detail further plans on Thursday for the next year, and it will be interesting to see what he plans to focus on.
Whatever happens, Sony have to get to the root of these problems soon, because they will start facing severe financial sanctions on the market if it cannot make itself solvent again.