Sony will cut jobs at TV group and headquarters, and close Japanese phone factory

The company said the cuts, part of 10,000 announced in April, will come mainly through early retirement and job transfers

Sony said Friday that its current round of job cuts will include workers in its struggling TV business and at its headquarters in Tokyo, and it will close a mobile phone and lens factory in central Japan.

The job cuts, part of a global staff reduction of 10,000 announced in April, reflect Sony's shift to outsource more manufacturing to component makers and vendors such as Foxconn. The company said the latest cuts will include about 2,000 workers and will come mainly from an early retirement program and shifting workers outside the company.

Sony said it will also close a factory in Gifu prefecture, west of Tokyo, that makes low-end mobile phones and digital imaging equipment including lenses. The imaging work will be shifted to a separate factory, while Sony will continue to focus on its higher end smartphones, sold mainly under the Xperia brand.

"This factory mainly makes feature phones for the Japanese market," said Sony spokesman George Boyd.

The electronics giant is in the middle of a restructuring plan that will reduce its global head count by 10,000 by March 2013, the end of its fiscal year. The company had 162,700 employees globally as of March of this year.

Echoing changes at other Japanese tech companies such as Sharp and Panasonic, which have moved and sold key offices in recent months, Sony will also make job cuts at its headquarters in Tokyo.

Sony said its latest staff reduction will include about 20 percent of the workforce at its main offices, or 500 to 600 employees, most of which are support staff. As the latest cuts are part of its existing restructuring plan, the company doesn't expect any new impact on its earnings forecast - Sony currently targets a profit of ¥20 billion (US$250 million) for the current fiscal year.

Sony is due to report its results for the July-September quarter on Nov. 1.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?