Sony to cut jobs in their restructuring efforts

Sony to cut jobs in their restructuring efforts

Entertainment giants Sony has announced that they would probably cut as many as 10000 jobs during the implementation of their restructuring plans. The company is struggling in markets where it used to dominate with players like Microsoft and Apple entering with their products and they can no longer afford to continue their business strategies they followed till now.

The company slashed its full-year outlook and said that they would cut about 7 percent of its global work force. Sony is also increasingly facing competition from Matsushita Electric Industrial and Sharp Corp. in flat televisions market as these companies have started working harder to innovate and bring better products in the market.

Sony is on its way to report operating loss of 20 billion yen in the current business year to March as a lot of money would be spent on their restructuring plans. This figure is quite a disappointment when we consider their estimate of an operating profit of 30 billion yen. Despite already on a three-year restructuring plan called “Transformation 60″, the company is seeing falling revenues and weakening demand for aging products such as CRT TVs and CD Walkmans.