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

Started Apr 9, 2012 | Discussions
DPRchallenger Forum Member • Posts: 75
Sony to Eliminate 10,000 Jobs (6% of workforce)
CFynn Veteran Member • Posts: 5,224
Re: Sony to Eliminate 10,000 Jobs (6% of workforce)

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

Half these job loses seem to be from their chemicals division and I expect a lot of the rest are from their TV division.

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

also see this thread:

http://forums.dpreview.com/forums/read.asp?forum=1000&message=41043467

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M-L Senior Member • Posts: 1,117
Not according to this report......

CFynn wrote:

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

http://www.inquisitr.com/217346/sony-to-fire-10000-workers-in-2012/

"Among the poor performers: televisions (down 28.4% in sales), home audio and video (-14.8%) and digital imaging (-24.7%) "

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goetz48 Senior Member • Posts: 2,607
Never heard about earthquake, tsunam, & flood?

Sometimes the market is influenced by higher forces than customers.

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CFynn Veteran Member • Posts: 5,224
Re: Not according to this report......

M-L wrote:

CFynn wrote:

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

http://www.inquisitr.com/217346/sony-to-fire-10000-workers-in-2012/

"Among the poor performers: televisions (down 28.4% in sales), home audio and video (-14.8%) and digital imaging (-24.7%) "

Hard to tell. Remember their camera plant in Thailand was pretty well wiped out last year, many products were delayed and a lot still seem to be in very short supply, - that could easily account for much of the decline in that department.

Anyway Sony seem to know how to make good camera sensors and some of their cameras are innovative - but competing in the photographic field against such well established companies as Nikon and Canon is a difficult task.

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Wubslin Regular Member • Posts: 280
Re: Sony to Eliminate 10,000 Jobs (6% of workforce)

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

I'm sure they'll think of something. How about installing malware on their cameras and then lying about it?

http://en.wikipedia.org/wiki/Sony_BMG_copy_protection_rootkit_scandal

Doug J Veteran Member • Posts: 9,320
Re: Sony to Eliminate 10,000 Jobs (6% of workforce)

CFynn wrote:

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

Half these job loses seem to be from their chemicals division and I expect a lot of the rest are from their TV division.

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

[snip]

Sony states it will expand its imaging business.

"The company developed three sensors it says are smaller, capture better images and consume less power. Sony is spending 140 billion yen by March 31 to double its production capacity of complementary metal-oxide semiconductors, or CMOS, said Tadashi Saito, head of the chip business. "

http://www.bloomberg.com/news/2012-02-02/sony-widens-annual-loss-forecast-on-strong-yen-television-sales.html

Sony's new business plan will be presented April 12. It needs to stop the hemorrhaging, but it appears imaging might be OK.

Cheers,
Doug
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M-L Senior Member • Posts: 1,117
Me?

yes, of course I have heard of all the earthquake and flood, but I was only quoting a report. It was a fact. I NEVER gave any reason why Sony did not do well. It is up to the individual to interpret the results. In any case, Sony were having trouble long before the flood I would say.

goetz48 wrote:

Sometimes the market is influenced by higher forces than customers.

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Regards
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My photo gallery:
http://www.matthewlin.com

Joseph S Wisniewski Forum Pro • Posts: 34,130
That's a different division...

Doug J wrote:

CFynn wrote:

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

Half these job loses seem to be from their chemicals division and I expect a lot of the rest are from their TV division.

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

Sony states it will expand its imaging business.

Not in the article you quote, they don't.

"The company developed three sensors it says are smaller, capture better images and consume less power. Sony is spending 140 billion yen by March 31 to double its production capacity of complementary metal-oxide semiconductors, or CMOS, said Tadashi Saito, head of the chip business. "

That's an entirely different part of Sony, and one that's reportedly up for sale.

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Ciao! Joseph

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exp1orer
exp1orer Senior Member • Posts: 2,813
Re: Me?

exactly!. Sony has been bleeding for 4 years already. They hired a foreign CEO to inject a fresh management style and put it back to black but it seems it's not working effectively.

M-L wrote:

yes, of course I have heard of all the earthquake and flood, but I was only quoting a report. It was a fact. I NEVER gave any reason why Sony did not do well. It is up to the individual to interpret the results. In any case, Sony were having trouble long before the flood I would say.

goetz48 wrote:

Sometimes the market is influenced by higher forces than customers.

-- hide signature --

Regards
Matthew Lin

My photo gallery:
http://www.matthewlin.com

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Doug J Veteran Member • Posts: 9,320
Re: That's a different division...

Joseph S Wisniewski wrote:

Doug J wrote:

CFynn wrote:

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

Half these job loses seem to be from their chemicals division and I expect a lot of the rest are from their TV division.

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

Sony states it will expand its imaging business.

Not in the article you quote, they don't.

"The company developed three sensors it says are smaller, capture better images and consume less power. Sony is spending 140 billion yen by March 31 to double its production capacity of complementary metal-oxide semiconductors, or CMOS, said Tadashi Saito, head of the chip business. "

That's an entirely different part of Sony, and one that's reportedly up for sale.

Joe, which division are the cameras & sensors in?

Cheers,
Doug
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Joseph S Wisniewski Forum Pro • Posts: 34,130
Sony structure...

Doug J wrote:

Joseph S Wisniewski wrote:

Doug J wrote:

Sony states it will expand its imaging business.

Not in the article you quote, they don't.

"The company developed three sensors it says are smaller, capture better images and consume less power. Sony is spending 140 billion yen by March 31 to double its production capacity of complementary metal-oxide semiconductors, or CMOS, said Tadashi Saito, head of the chip business. "

That's an entirely different part of Sony, and one that's reportedly up for sale.

Joe, which division are the cameras & sensors in?

The "Digital Imaging Business Group" and the "Semiconductor Business Group", respectively.

They're not even in the same sections of the consolidated Sony. Sony reports the semiconductor group together with the "Digital Solutions" group as one unit (that's not the right word, sorry), and the imaging group gets reported with the "Professional Solutions" group as another unit. Despite that structure, the imaging and professional solutions group do not get along well.

There's also the three entertainment groups that do hardware (TVs, playstations, blu-ray), two mobile groups, two medical groups, and entertainment groups for movies and audio.

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Rahon Klavanian 1912-2008.

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Ciao! Joseph

http://www.swissarmyfork.com

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Doug J Veteran Member • Posts: 9,320
Re: Sony structure...

Joseph S Wisniewski wrote:

Doug J wrote:

Joseph S Wisniewski wrote:

Doug J wrote:

Sony states it will expand its imaging business.

Not in the article you quote, they don't.

"The company developed three sensors it says are smaller, capture better images and consume less power. Sony is spending 140 billion yen by March 31 to double its production capacity of complementary metal-oxide semiconductors, or CMOS, said Tadashi Saito, head of the chip business. "

That's an entirely different part of Sony, and one that's reportedly up for sale.

Joe, which division are the cameras & sensors in?

The "Digital Imaging Business Group" and the "Semiconductor Business Group", respectively.

They're not even in the same sections of the consolidated Sony. Sony reports the semiconductor group together with the "Digital Solutions" group as one unit (that's not the right word, sorry), and the imaging group gets reported with the "Professional Solutions" group as another unit. Despite that structure, the imaging and professional solutions group do not get along well.

There's also the three entertainment groups that do hardware (TVs, playstations, blu-ray), two mobile groups, two medical groups, and entertainment groups for movies and audio.

Thanks, it'll be interesting to see how the new organization is structured.

Cheers,
Doug
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OP DPRchallenger Forum Member • Posts: 75
Sony flagged a record $6.4bn annual net loss
GMack Senior Member • Posts: 2,928
Re: Sony to Eliminate 10,000 Jobs (6% of workforce)

There was a recent report that China controls a lot of the rare earth materials used in some electronics, especially flat panels and semiconductors. They aren't exporting that rare material as much now, or they make it extremely expensive if they want it. Instead, they entice manufacturers to relocate there (i.e. Apple, IBM, etc.) to gain access to their minerals they need. No doubt Sony may need to play nice and open a manufacturing base in China and relocate some of what they did in Japan to there which may explain the losses, both financial and job base.

Mack

DrugaRunda Senior Member • Posts: 2,741
Re: Sony flagged a record $6.4bn annual net loss

No suprises that Stringer delivered this, I thought they were committing suicide with making him CEO at the time, strangling innovation with entertainment mindset, giving the company which relies on hardware innovation to live into the hands of an entertainment (cripple the hardware to protect IP) CEO, but I guess it actually went better than total collapse. The true cost of getting into the music/movie business is only felt now, once the entertainment division strangled the rest of the company (while keeping itself as the only profitable division at the same time!!!). While not the "only" problem, IMO their philosophy at the top made for a series of lacklustre products across all the other divisions, while others like Apple or Samsung were displacing them from the markets they once owned.

They will turn around, but it is hard to imagine they will be the leader they once were. Camera division, despite of apparent losses should be on an OK track long term...

Konica Minolta for example is reporting a modest profit over the past two years even in the current climate with strong Yen.

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Rafy Sugiri Regular Member • Posts: 213
Re: Not according to this report......

M-L wrote:

CFynn wrote:

Sony digital imaging division claims they cannot keep up with demand - so why should there be job losses there?

http://www.inquisitr.com/217346/sony-to-fire-10000-workers-in-2012/

"Among the poor performers: televisions (down 28.4% in sales), home audio and video (-14.8%) and digital imaging (-24.7%) "

And the professional devices that makes semiconductors is also losing money

http://www.ft.com/intl/cms/s/2/0b8cb566-051e-11e1-b8f4-00144feabdc0.html#axzz1reNv1tLl

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.

Greenville Senior Member • Posts: 2,236
I don't understand why they stay in the TV Business

We bought a new TV several months ago and did a lot of searching, reading reviews, etc... Until flat screens came out all of our TVs were Sony and generally XBRs. None of the Sony TVs we looked at were price comparable to the other top name brands. Few had really compelling features.

Personally I can't figure out why they even try to stay in the TV business. They are not price competitive and they loose lots of money in the business. I would hate to see them do a Philips - they sold their TV brand and now they are Emerson.

Hopefully the new CEO will know what battles to fight and how to fight the battles.

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tyb Senior Member • Posts: 2,620
Re: Sony to Eliminate 10,000 Jobs (6% of workforce)

A long time.. the larger question of which I've debated with a few. How long before Sony jettisons DSLR business and others because of low to negative ROI!

DPRchallenger wrote:

how long can sony maintain lossing money without going under?

http://www.businessweek.com/news/2012-04-09/sony-to-cut-10-000-jobs-worldwide-6-percent-of-workforce-nikkei-says

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