Sony plans job cuts; 10,000 to lose jobs

As per recent reports by the Japanese business daily, Nikkei (via Reuters), Sony is planning to give the pink slip to 10,000 of their workers that make up for roughly 6 percent of their entire workforce, by the end of this year. The report goes on to add that roughly 5,000 of the proposed 10,000 workers are going to lose their jobs, by the end of the year to the company’s restructuring plans of their chemical and small and medium LCD businesses, in addition to another 5,000 domestic and international job cuts. This move to sack 10,000 workers is aimed towards improving operational efficiency, while helping them focus better on their mobile side of things. 

Downsizing to improve efficiency!

The proposed job cuts, reportedly are in response to the losses that are being bundled onto Sony’s TV business for which a new CEO was appointed; part of a broader measure where Sony might just ask the company’s top 7 executive directors, which includes Chairman Howard Stringer to return their bonuses. This cut-off, unlike the one in 2008 wherein they were streamlining and selling off Sony’s production capacity, includes sacking employees. This cut-off will affect both the international and domestic affairs of the company, the functions of which range from development to production to management.  

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This particular news follows recent re-organization announcements from the company, as a result of Sony’s 2011 lackluster financial results, which are expected to be as big as a loss of $2.9 billion; a clear picture of which will be available once Sony releases their annual report in May. There has been no official comment or reaction by Sony on this, but we should get a better idea, as soon as Sony release their annual reports next month.