Major Layoffs Hit Sony Due to Restructuring Plan

[Shawn Zipay]

This past April, it was rumoed that Sony would lay off roughly 10,000 employees (6% of the company). Today, it was revealed that the first phase of this restructuring plan is now underway. The reduction of its workforce by 10,000 employees, however, has been pushed back to March 2013.

2,000 employees will be laid off in Europe. 5,000 employees will be let go after a failed venture with Ericsson. Another 2,000 employees will be let go from its head offices in Gifu, Japan. The remaining will be losses "at other factories around the world."

The cuts are expected to save Sony roughly $378.6 million a year. Sony's CEO, Kazuo Hirai, says that the company will again place a huge focus on gaming, digital imaging, and mobile devices in a bid to return to their former glory.

(via Reuters)

[K-16]

Sony's CEO, Kazuo Hirai, says that the company will again place a huge focus on gaming, digital imaging, and mobile devices in a bid to return to their former glory.

Suing Mr. Lambert's company instead of making a counter ad subtly referencing the Bridgestone incident? You lost one of your few successful marketing campaigns and will now rely on a new actor/marketing firm (don't bring back Mr. Thompson; he made the PSP look like a toy for immature audiences).

Selling a cheaper PS3 (to manufacture) at the same price as before? You lost your holiday console sales and will now rely on software sales.

At this point you're only focusing on digital imaging and mobile devices. But after you shut down the Xyperia fan blog, and forced users to switch Sync services (Google Sync is superior, but disruptive when people have to migrate after settling with Sony's version), you have a lot to do to regain customers' faith in your products/services in the mobile device department. I think you're fine in digital imaging, so no ideas what you're focusing on there. So far, the only focus you've been doing is exercising the law in your favor while ignoring very obvious opportunities you could have benefitted from.

[i]Added (much) later: Oh wow, I just noticed you're phasing out every single phone except smartphones... So your focus on mobile devices is on smartphones only? So you piss off every single customer that wanted legacy support for regular Sony Ericsson (now Sony Mobile Communications) phones if anything breaks, and force them to migrate to Nokia/Virgin Mobile while you battle Apple and Samsung? Hmm... Good luck with that and hope your sports sponsorships give you the needed edge. I'm going to laugh if Apple and Samsung dominates the casual phone market as well. Your focus would have been all for nothing.