Deep Cuts Ahead At Sony Corp
January 5, 2009 at 5:15 AM (PT)
SONY CORP is likely to announce closures of JAPANESE factories and major divisions early next month, THE TIMES OF LONDON said on MONDAY, but the company denied any such plan existed. The company faces halting sales and mounting piles of inventory in the wake of the financial crisis, even as a stronger yen bites into earnings.
SONY, whose empire encompasses semiconductors, movies, insurance and of course, music, is braced for a series of measures that would abolish some of its domestic operations and transform the electronic giant's business, THE TIMES said, citing company sources. "We do not plan to announce additional restructuring measures at this time," spokesman ATSUO OMAGARI said, in response to the report. "We don't have any such plan."
SONY announced a $1.1 billion savings plan in its electronics division in DECEMBER, but it needs further and bigger restructuring measures to secure growth, analysts have said. It said last month that it would cut 16,000 jobs, curb investment and pull out of businesses for savings of 100 billion yen a year, as the holidays failed to coax spending.