Sony to Eliminate 10,000 Jobs (6% of workforce)

Started Apr 9, 2012 | Discussions thread
Cy Cheze Senior Member • Posts: 2,028
CEO Hirai vows to turn around Sony

Article:

http://www.cbsnews.com/8301-500395_162-57412962/sony-cuts-10k-jobs-outlines-turnaround-strategy/

Evidently, the insurance and entertainment segments make some money. Neither of those will do so, though, if bond prices fall (and reverse the insurance sub incomes) or if the studios can't roll out blockbusters this year. Anyway, neither can offset the substantial losses incurred by the "core" consumer electronics field.

Sony will probably have to exit the manufacture of TV screens or simply license a Chinese firm to crank out screens (and maybe cameras?) with the Sony name glued on. Otherwise, Sony continue to be a "charity" operation, selling HDTVs below cost.

Smart phones and tablets have absorbed a big share of the consumer electronics market occupied in the past by Walkman, Blu-ray, PS3, or cameras. Sony has been late to the party (behind Apple and Samsung) for phones and tablets. Even if it could deliver lots of NEX7s (which it can't), Sony would find it hard to make money, since camera pricing is under such heavy pressure. It also makes so many diverse P&S models that it raises costs and cannibalizes its own sales. The tentative "alliance" with Olympus must involve the medical imaging unit, not the cameras.

The quake, flood, and tsunami are merely incidental factors. Sony would have lost money anyway last year and has been losing money for six years. It's hard to alter a corporate culture that assumes that size alone assured success, or that one could make everything and people would buy. If every losing unit is allowed to save face by making a heroic struggle to do what it cannot, profitable units subsidize the bad, until none are profitable.

Not to dishearten fans, but a FF a99 camera is about as relevant to the firm's turnaround as an MXY7 Ohka.

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