Sony to cut 10,000 jobs in radical bid to revive firm
Six per cent of the electronics giant's global workforce to be axed after record $6.4bn losses
AILING electronics giant Sony will cut 10,000 jobs after forecasting its "worst ever" losses of $6.4bn (£4bn) for 2012.
The results – twice as bad as previous estimates – have prompted CEO Kazuo Hirai (pictured) to offer radical strategies for an overhaul of the 65-year-old Japanese firm, including cutting its 170,000-strong global workforce by six per cent.
The overhaul strategy, called 'One Sony', also lays out plans to strengthen its core businesses by expanding digital imaging, mobile, and gaming markets, which it hopes will make up 70 per cent of Sony's sales by 2014.
Hirai, who replaced Howard Stringer as CEO in February, also has his sights set on the firm's troubled HDTV business, which has lost Sony money for the last eight years. The One Sony strategy outlines ways to cut costs, streamline the production line and return to profit by 2014.
At a news conference today at Sony's Tokyo headquarters, Hirai said "investor voices" had been calling for change and "Sony will change".
Rumours of large-scale layoffs have been circulating since Monday with the Nikkei newspaper speculating jobs will most likely go in Sony's chemicals and LCD operations.
Japanese TV makers have been blighted by weak demand, tough competition and the strength of the yen, which has made exports less competitive, says Reuters.
But not everyone is convinced by Sony's strategy. Tetsuro Ii, president of Commons Asset Management, said: "You can't really see the roadmap for how they're going to revive the electronics business, nor how they're going to create new value. It doesn't feel like an aggressive makeover."
In Wales, workers at the Pencoed plant are bracing themselves for bad news, reports the BBC. The factory, which employs 450 people, specialises in manufacturing specialist broadcast cameras and other LCD products.