After the announcement that it has just recorded its first annual loss in 14 years, Sony Global has issued its thoughts on the future and an update on its restructuring initiatives, including job losses and manufacturing site closures.
In efforts to improve results in the future, Sony has outlined that it is working to reduce costs by more than 300 billion yen. To accomplish this it will have to reduce its manufacturing site count by eight sites (four in Japan and four overseas, total count reduced from 57 to 49) as well as reduce total headcount by 16,000. In which 8,000 will leave through early retirement and other programs while the other 8,000 will be reduced from its seasonal and temporary workforce.
Losses are expected throughout 2010 due to the assumption that the deterioration of the business environment will continue amidst the slowing global economy.
The statement issued by Sony also comments that the unfavourable business conditions at Sony Ericsson will play a large factor.
In terms of electronics, Sony expects a decrease in sales in the future mainly due to the appreciation of the yen, but it does however forecast a significant contraction in the operating losses of the television side of the business.
In its gaming division, Sony also forecasts a decrease in sales, mainly due to the decline in its PS2 business. But in terms of the PS3, the company is confident that profitability will increase due to hardware cost reductions and an enhanced line-up of software titles.
Sony Pictures is also expected to fare much better leading up to the end of 2010, with anticipation that higher revenue and operating income will be spurred on by a greater number of major film releases, compared to the previous period.