Sony To Cut 10,000 Jobs -- Mostly In Tv Unit
Sony, whose Trinitron TV sets have traditionally served as the benchmark for television quality, may be considering downsizing its TV business, particularly in small and midsize products, published reports said today (Monday). Sony has been hit on every side by a glut of TV sets on the retail market that have forced down retail prices, the continued worldwide recession, which keeps those sets on the shelves, and the strong Japanese yen, which reduces its revenue from abroad -- particularly the U.S. As a result, the company is planning to revamp its TV business, beginning with a sizable cut in its workforce, according to the Nikkei newspaper. The business journal said today that the company plans to cut 10,000 jobs, with most of them expected to come from its ailing TV business. Sony has already forecast a net loss of $2.7 billion for its just-ended fiscal year, much of that attributed to the TV manufacturing unit. More will be known about the company's plans on Thursday, when new CEO Kazuo Hirai is expected to describe how Sony plans to return to profit after four years of losses. The Nikkei said that Hirai is also expected to ask Sony's seven executive directors, including Chairman Howard Stringer, to return their bonuses.