On the heels of Yahoo's announcement that it would cut 14 percent of its workforce, reports are coming out today that Sony, over the next year, will eliminate 10,000 jobs.
Bloomberg, citing and translating a report from The Nikkei, tells that the cuts are a part of CEO Kazuo Hirai's restructuring plan after taking over control of the company this month. And around half of those cuts, the AP reports, will come from the company's decision to sell its chemical unit and merge LCD panel operations with Toshiba and Hitachi. "As many as 5,000 job cuts will come from reorganizing businesses making chemicals and small-and medium-sized panels," wrote Bloomberg's Shunichi Ozasa and Naoko Fujimura.
"Sony earlier this year reported a 159 billion yen ($2.1 billion) loss for the October-December quarter and more than doubled its projected loss for the full fiscal year through March 2013," adds the AP. “This [the cuts] wouldn’t help address the company’s real problems, like the slumping TV business," one analyst told Bloomberg. This perception was seconded by an analyst who told Reuters: "One of the things I'd like to see is that they shift their resources to other areas outside TVs ... If they stick to TVs, they may have to fight a war they may not be able to win."
This article is from the archive of our partner The Wire.