Sony has publicized that the business is going to lay off 10,000 employees. The business has been hemorrhaging cash for the last four years and is trying to find a way to stem the dismal tide of losses.
The mighty are despairing
Millions of the Walkman, Discman and PlayStations 1, 2, and 3 were sold by Sony. The business also was very successful when producing films and televisions programs. It is one of the most well-known entertainment corporations out there.
Unfortunately, success cannot last forever. The company is worth $20 billion now, which is a huge decrease from the $200 billion it was worth in 2000. Fewer people have been interested in electronics in the last few years as well.
Problems from disasters
Sony has not been able to get products to the industry, which was another reason why the company had massive losses last year. This inability to get products on the market came from the disasters in Japan and flooding in Thailand, according to Daily Mail.
During the last quarter of calendar year 2011, Sony posted a loss of $2.1 billion, according to CBS, and Sony is projecting a loss of $2.7 billion for the fiscal year that ended in March. In reaction to the losses, Sony is going to combine some of its operations, such as selling off its holdings in chemical manufacturing. Sony’s liquid-crystal display, or LCD, division was already spun off this year into Japan Display, Inc., according to MarketWatch, a joint venture between Sony, Hitachi and Toshiba.
Sony is not just selling its chemical operations, which were sold to the Development Bank of Japan, but it has also asked top executives to return bonuses. It will reduce its workforce by 10,000 people as well, according to MSNBC.
Firing in the last
Sony has gone through workforce reductions before. In December of 2008, the business laid off 16,000 employees at the depths of the recession.
The upcoming reductions in staff are slated to take place over a period of two years. Half of the layoffs are likely to take place in Sony’s chemicals and LCD operations, while those companies are being restructured.