Friday, September 23, 2005

In a major restructuring plan, Sony announced that approximately 7% of their workforce will be laid off between now and March 2008. Nearly 4,000 of the job losses will be in Japan itself.

The plan to try and revitalise the company is the brainchild of Sir Howard Stringer, the company’s first ever non-Japanese CEO. Apart from the job losses, eleven of the company’s 65 manufacturing plants will be closed or put up for sale. Restructuring follows considerable stock price falls over the last five years with the share value reduced to less than 40% of the 2000 value.

As well as announcing restructing plans, Sony announced an expected loss of 10 billion yen (US$ 90 million) during the current financial year.