Sony to cut 8,000 jobs

sony cut jobs

Sony, the Japanese consumer electronics giant, said on Tuesday that it will slash 8,000 jobs or about 4 percent of its employees, scale back investments and pull out of businesses as it aims to cut $1.1 billion in costs out of its ailing electronics operations.

Forecasters anticipate the electronics giant’s income to collapse in 2009 on a surging yen, investment losses, a supply glut of liquid crystal displays and digital cameras, and a slowdown in consumer spending in the economically depressed West.

The Japanese corporation which has 185,000 employees worldwide, said it will complete the layoffs by the end of March, 2010. It did not give a country breakdown for the job cuts but said they will come from its electronics business, which has 160,000 workers.

“The number sounds big, but this staff reduction won’t be enough. Sony doesn’t have any core businesses that generate stable profits,” said Katsuhiko Mori, a fund manager at Daiwa SB Investments.

“After the workforce reduction, the next thing we want to see is what is going to be the business that will drive the company.”

Sony on Oct. 23 said net income will probably drop 59 percent in the year ending March 31, slashing the outlook by 38 percent as the stronger yen and slumping demand undermine sales of its electronics including Bravia televisions. Panasonic reduced its net income outlook for the fiscal year by 90 percent.