Amidst loss of $1.08 billion annually, sony cuts 5000 jobs and shuts its Vaio PC division as the electronic giant is struggling to reinvent itself in the low down triggering world over. Addressing Media Personnel today Sony CEO Kazuo Hirari made this announcement and had also planned to spin off TV operations into a separate business to fix a division that he believes remain centered to the Japanese electronics maker.
The maker of Bravia and Playstation game consoles has faced serious challenges from foreign rivals such as US giant Apple and Samsung as they were outplayed in smartphone and low margin television business.
The decision to cut 3 percent of its global staff (5000 jobs), will save 100 billion yen in annual foxed cost for Sony. The company has announced the sale of its Vaio brand of PCs to a Japanese investment fund. The deal with Japan industrial partners was reportedly worth between $400 million. No financial details have been disclosed yet. The Tokyo based Japanese electronics and entertainment maker will split off its money losing TV division and run it as a wholly owned subsidiary.
On seeing drastic changes in the computer market and the fact that PC sales slump to almost 8% last year according to IDC report, Sony is now concentrating on its smartphone and tablet business and case planning, design and development of PC products.
While talking to reporters Hirari says that company’s electronics business was gradually improving but restructuring costs would send the company into losses for the fiscal year.
Sony had suffered a loss of 10.8 billion yen in the October-December quarter of 2012.
Restructuring the PC and TV operations will cost Sony 20 billion yen ($197 million) in expenses for the current fiscal year, and another 70 billion yen ($689 million) in fiscal 2014, it said.