Sony has announced plans to cut 8,000 electronics jobs - 5% of the division - as well as shutting 10% of its manufacturing sites.
The company said the jobs would be cut by April 2010 but did not say in which countries the staff would go. Sony said it had been trying to reduce production because of the downturn but warned it still had to do more.
The news came as Japan drastically raised its estimate of the amount its economy shrank from July to September. The Cabinet Office said the economy had shrunk at an annual rate of 1.8% in the quarter, down from its previous estimate of 0.4%.
Sony aims to generate cost savings of about 100bn yen ($1.1bn; £730m) by the end of the next financial year. It will cut its investment in electronic operations by 30% and shut down about 10% of its 57 production facilities.
"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, a fund manager at Daiwa SB Investments.
"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company." More PlayStation 3 News...