TOKYO: Sony Thursday said it would cut about
10,000 jobs and spend nearly US$1 billion on restructuring costs this fiscal
year as the struggling electronics and entertainment giant moves to stem
massive losses.
"As
Sony Group as a whole, we expect roughly 10,000 job cuts," it said in a
statement Thursday as the company's new chief Kazuo Hirai held a news briefing
to announce his plans to turn around the iconic firm.
Sony
said it would also spend more than 75 billion yen (US$925.7 billion) this year
on restructuring costs.
Hirai,
who replaced Welsh-born US chief executive Howard Stringer, said he would
target deep losses at Sony's struggling television unit, which the firm said it
was aiming to return to profitability by 2014, while posting total sales of 8.5
trillion yen (US$105.0 billion) by 2015.
Sony,
which has suffered its fourth consecutive year in the red, said it would usher
in changes across its divisions, boost its games business and expand further into
emerging markets.
"Now
is the time for Sony to change," Hirai told reporters from Sony's Tokyo
headquarters.
"What
is urgent is that we strengthen our core businesses while rebuilding our TV
business," he added.
Hirai's
comments came as the maker of PlayStation consoles and Bravia televisions
warned earlier this week it would post a record full-year loss of 520 billion
yen (US$6.4 billion), more than five times its 90 billion yen loss prediction
in November.
Japan's
electronics giants have suffered in recent years, particularly in their
television business as rampant competition from foreign rivals such as South
Korea's Samsung has sent prices tumbling, together with the effects of a
strengthening yen and a stuttering global economy.
The
latest jobs cuts, about 6.0 per cent of Sony's total workforce, come after an
earlier restructuring announced in December 2008 amid the global financial
crisis that saw the company slash about 16,000 jobs worldwide.
Industry
analysts have said Sony must usher in major reforms to counter fierce overseas
competition and continuing losses at its mainstay television business. It still
generates substantial profits from electronics parts.
Sony
has blamed tough competition, falling prices, slow demand, the impact of severe
flooding in Thailand last year, and the high yen among the reasons for its weak
balance sheet.
Credit
rating agencies Moody's and Standard & Poor's both downgraded Sony earlier
this year.
-
AFP/al/wm
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