Topic: Sony posts large losses, publicized layoffs
Sony has long been one of the most significant corporations in customer electronics. However, the business has been publishing large losses for the past 4 years running, most recently predicting a $2.7 billion loss. The company is restructuring and will fire 10,000 employees. Article source: 10K workers to get pink slips in Sony layoffs.
Used to be on top
Sony has been a very well-known company releasing some of the most popular devices known. For example, it has produced a lot of successful movies and shows, and it sold millions of the Walkman, Discman and PlayStations 1, 2, and 3.
During the last few years, fewer people have been interested in getting electronics, which is partly why Sony’s worth today is only at $20 million. Compared to 2000, that is a massive decrease. In 2000, Sony was worth $200 billion, according to Bloomberg.
Never ending flooding
The Daily Mail explained that the natural disasters in Japan and flooding in Thailand have not hurt just the automotive industry; Sony has lost a lot of business due to it as well. The business was unable to get products to the industry last year, which brought on enormous losses.
[One can always get payday-loans in a pinch]
In the last quarter of calendar year 2011, Sony posted a loss of $2.1 billion, according to CBS, and Sony is predicting a loss of $2.7 billion for the fiscal year that ended in March. In response to the losses, Sony is going to combine some of its operations, including 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.
Sony layoffs in rounds
In 2008, Sony laid off 16,000 workers during the recession, which means this is not the first reduction being seen.
The next layoffs will take two years to get through. Sony’s chemicals and LCD operations will be where half of all layoffs take place.
MarketWatch: http://www.marketwatch.com/story/sony-i 2012-04-09