Report: Sony Connect Eliminating Positions
June 21, 2007 at 5:46 AM (PT)
Internet music retailer SONY CONNECT INC. is eliminating some positions as part of a restructuring plan to shift resources to other online services, but it intends to continue operating, the company said TUESDAY. The firm denied a report suggesting the job cuts are a prelude to shutting down its music service in a matter of weeks. SONY CONNECT said it is shifting emphasis to other network services, specifically one for users of the PLAYSTATION game console.
SONY CONNECT did not disclose the scope of the job cuts, but sources at the company familiar with the restructuring said about 20 of the 90 positions will be eliminated. The source spoke with THE ASSOCIATED PRESS on condition of anonymity because the company has not made details of the layoffs public.
In addition to selling music downloads, SONY CONNECT also operates an e-book download store called SONY READER that debuted last year.
SONY CONNECT began operations in 2004, but like other online music services, it has had a tough time competing against APPLE's ITUNES Music Store, which is tied to the dominant IPOD player.