Japanese electronics giant Sony Corporation will cut 8,000 jobs, representing five per cent of its workforce worldwide, under its cost cutting plan that aims to save more than 100 billion yen ($1.1 billion) and improve profitability.
"Sony plans to reduce headcount in the electronics business worldwide by about 8,000 out of total strength of about 160,000 as of September 30, 2008," a company statement said.In addition, the company also plans to reduce headcount in its seasonal and temporary workforces, the company said while outlining its plan to improve profitability and enhance operational efficiency in its electronics businesses.
Following a rapid demand slowdown in the television market, Sony has decided to postpone its recently considered plans to invest in production expansion at the Nitra plant in Slovakia -- one of Sony's sites assembling LCD televisions for the European market.
Under the corporate restructuring measures, Sony is planning to reduce investment in the electronics business by about 30 per cent in the fiscal 2010, compared to its mid-term plan.
It also plans to reduce the total number of manufacturing sites by 10 per cent, from the current total of 57 by March 31, 2010, the statement added.
With these measures, Sony aims to establish a corporate structure capable of delivering estimated total annual cost savings of more than 100 billion yen by the end of FY'10.By the end of the current fiscal year, Sony plans to cease production at two overseas manufacturing sites, including Sony Dax Technology Center in France, which makes tape and other recording devices. In addition to these moves, Sony would continue to implement measures required to help assure both short and longer-term profitability and growth.
Sony's plan follows that of a host of companies that have announced mass layoffs amid poor current market conditions.
The companies that are cutting down their staff, include Dow Chemicals, telecom major AT&T, financial services giant Citigroup and Chemical company DuPont.
