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- Apr 2005
Sony to Announce Restructuring Details This Week
The Financial Times reports that Sony is set to announce details of its restructuring plan this week.
Despite up to six plants closing and the cutting of 16,000 jobs, analysts have warned that this not enough and Sony many need more drastic measures.
To quote: Sony Corp will announce details of its restructuring plan this week amid internal company resistance to job cuts in Japan, the Financial Times said on Wednesday.
The maker of Bravia LCD TVs, Cyber-shot digital cameras and PlayStation game consoles outlined plans last month that called for curbing investment, closing five to six plants and cutting 16,000 jobs to save $1.1 billion a year in costs.
But analysts and other industry watchers have said Sony will likely need more drastic measures to fight a crippling appreciation in the yen and a sharp slowdown in demand for electronics as the global recession spreads.
"Sony's not in a position to halt all domestic production but it has to do something that drastic," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
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