Sony To Cut Workforce Posting Expected $90 Million Loss
September 26, 2005 at 10:00 AM (PT)
SONY CORP. announced today it would cut about 7% of its global work force, sell more than $1 billion in assets, and post a loss this year of about $90 million as a part of its much-anticipated restructuring plan. This $90 million loss will be the company's first shortfall since '94, when it wrote off costs from acquiring COLUMBIA PICTURES. SONY said it would book about $1.9 billion in restructuring charges in the two business years through MARCH '07 as it closes plants and eliminates 10,000 jobs.
"SONY and its peers all face tremendous pressure in the marketplace, but we have a sense of urgency and we have a sense of purpose. We can and will compete vigorously," SONY's new CEO, HOWARD STRINGER, told a news conference.
SONY has already cut 20,000 jobs and significantly lowered fixed costs under a previous three-year restructuring plan that was scheduled to end in the current business year. That plan did not return SONY to increased profitability, but instead saw the technology and entertainment company's earnings further dwindle.