Sony Set To Slash 8,000 Jobs
December 9, 2008 at 5:20 AM (PT)
SONY announced TODAY (12/9) that it would eliminate 8,000 jobs and rein in planned investment as it reacts to the global economic slowdown, reports THE NEW YORK TIMES. SONY, which had already announced scattered cost savings measures, blamed the rapid deterioration in the global economic outlook and the strength of the Japanese currency for the cuts.
"These initiatives are in response to the sudden and rapid changes in the global economic environment," SONY, which has a workforce of 160,000, said in a statement. SONY aims save more than 100 billion yen, or $1.1 billion, a year through the measures, which also include shutting several manufacturing sites.
The cuts are aimed at the manufacturing side of the business, with about 10% of the company’s 57 plants will be shut, including two overseas sites, and plans to expand a site in SLOVAKIA where LCD televisions for the European market are assembled have been delayed. The statement did specify which plants will be closed.
Based on such measures, SONY is planning to reduce investment in the electronics business by approximately 30% in the fiscal year ending March 2010, the company said.
The announcement was made after the TOKYO market closed and SONY shares closed up 3.9%.