Sony cutting 8,000 jobs.

father fishmas wrote:

Santapher wrote:I get what you're saying but this article is totally non related to anything happening at SCE is what I am saying. I don't think you're stupid at all but you seem to be looking for something that really isn't there.

Fair enough. I'm not looking for anything mate, I just think this could impact the long term pricing strategy for SCE, expecially when combined with the piss poor pound for us over here.

In the Game segment, operating loss decreased significantly year-on-year primarily due to PS3 hardware cost reductions and increased sales of PS3 software, as well as strong sales of PSP hardware.

Santapher wrote:The pressure on any company to make profit in the consumer market is great right now. But this article is about the electronics division and has no bearing on SCE or any other part of the Sony business.

I wouldn't be surprised if SCE were to make job cuts in the next six months as no business can afford to run at a loss and the weak Yen is not going to help matters.

Shadow wrote:

JingleJay wrote:

Santapher wrote:This is Sony and not the PlayStation arm of the business. Still sad to see all those people out of work

It could have a knock on effect though, as they are blatently struggling in this current economic situation, even every console they sell they are making a loss on.

I don't think that's still the case.

This is just gonna be a couple of Chinese factories isn't it? It's absolutely insane that 8,000 people represents only 5% of their manufacturing division.

GI.biz wrote:PlayStation division under review as part of corporate changes
Sony Computer Entertainment has confirmed that the PlayStation division is currently involved in the review affecting the wider Sony business

Sony announced this morning that it will axe 8000 jobs and reduce investment in manufacturing, although SCE would not detail whether those cuts will have a direct affect on the PlayStation group.

"In order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world," said Sony Computer Entertainment in a statement.

Sony said today that its electronics division has been affected by the current economic downturn, and it plans to downsize or withdraw from "unprofitable or non-core businesses."

However, some believe the announced measures won't be enough to help the company, with one analyst stating that Sony needs to prove which parts of the company are going to achieve profits in the future, rather than reduce headcount.

"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, fund manager at Daiwa SB Investments, to the BBC.

"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company."

Sony Will Cut 16,000 Jobs as Recession Curbs Demand

Dec. 9 (Bloomberg) -- Sony Corp. plans to eliminate 16,000 jobs in the largest reduction announced by a Japanese company since the credit crunch drove the world into a recession.

Sony will curb investments, outsource production and move away from unprofitable businesses by March 2010, as part of plans to save more than 100 billion yen ($1.1 billion) a year, the Tokyo-based company said today.

The job eliminations will take place in the electronics division and include 8,000 contract workers, it said.

Weak Demand

Faltering consumer spending led companies including AT&T Inc and DuPont Co. to announce more than 15,000 job cuts this month. The number of people on jobless benefit rolls in the U.S., one of the biggest markets for Asian exporters including Sony and Panasonic, climbed to a 26-year high in the week ended Nov. 22.

All reductions will take place by March 31, 2010, Sony said. The 8,000 full-time employees to be cut represent about 5 percent of the company’s workforce in the electronics division. Hara declined to provide the number of people on contract.

The reductions highlight the severity of the slump in consumer spending at a time when companies typically focus on the peak Christmas shopping season. Sony, the world’s second-largest maker of consumer electronics, said a “much larger” than anticipated deterioration in the economy spurred the cuts and the company may revise its mid-term targets.

Panasonic Corp., the world’s biggest consumer-electronics maker, cut its full-year net income outlook by 90 percent Nov. 27.

The Bravia-brand TV maker said it will “adjust” pricing to cope with the stronger yen, two weeks after saying it didn’t have plans for “massive cuts” in prices in the U.S.

The yen has surged 21 percent against the dollar and 39 percent versus the euro this year, damping the value of Sony’s earnings from overseas

Neph wrote:

Shadow wrote:

JingleJay wrote:

Santapher wrote:This is Sony and not the PlayStation arm of the business. Still sad to see all those people out of work

It could have a knock on effect though, as they are blatently struggling in this current economic situation, even every console they sell they are making a loss on.

I don't think that's still the case.

This is just gonna be a couple of Chinese factories isn't it? It's absolutely insane that 8,000 people represents only 5% of their manufacturing division.

I agree when yesterday i read that Nintendos entire work force is under 4000 It just shows how big a company Sony really are.

Poor people though not something they want in this economic situation

I wonder how many more big electronic firms we will see shedding a high number of jobs.

JingleJay wrote:

Neph wrote:

Shadow wrote:

JingleJay wrote:

Santapher wrote:This is Sony and not the PlayStation arm of the business. Still sad to see all those people out of work

It could have a knock on effect though, as they are blatently struggling in this current economic situation, even every console they sell they are making a loss on.

I don't think that's still the case.

This is just gonna be a couple of Chinese factories isn't it? It's absolutely insane that 8,000 people represents only 5% of their manufacturing division.

I agree when yesterday i read that Nintendos entire work force is under 4000 It just shows how big a company Sony really are.


Poor people though not something they want in this economic situation

I wonder how many more big electronic firms we will see shedding a high number of jobs.

Nintendo only manfuacture games and consoles, sony Manufacture a whole catalogue of electronic equipment.

Neph wrote:Bad time to be Sony Employee

Neph wrote:Surely Sony are in a badly Positioned area they Sell the most expensive Video Games COnsole their TV's & Laptops are Of the high Priced End and in theis Economic recession who's really going to buy them?