Sony Cutting 10,000 Jobs

The Nikkei newspaper has reported that Sony is cutting 6 percent of its global workforce, as decided by new CEO Kazuo Hirai. This loss of approximately 10,000 jobs comes primarily due to the company's ailing TV business, with most of the cuts coming from its "chemicals and small and midsize LCD operations".

Earlier this year in February, Sony reported an extraordinary loss of $2 billion in net income.

Hirai will have a briefing this Thursday to investors on Sony's plans to recover. Yuuki Sakurai, head of fund manager Fukoko Capital, is not surprised by this move but he has a warning:

Under a new CEO, it's easier to cut jobs or go in a new direction. One of the things I'd like to see is that shift their resources to other areas outside TVs... If they stick to TVs, they may have to fight a war may not be able to win.

The good news then is that Sony will likely rebuild its strength through its other outlets such as mobile devices and video games, particularly the PS3, Vita, and the PS4 "Orbis".

[Source]