In an effort to try to steer Sony back into black on its balance sheet, the consumer electronics giant is getting ready to cut 10,000 employees.
Kazuo Hirai took over the position of CEO for Sony back in February from Sir Howard Stringer, but it did not become official until this month. It appears his first big move at the company will be to cut six percent of its global workforce, which works out to 10,000 employees. The company that became synonymous with consumer electronics through out the 1980’s and 90’s has had a bit of a rough go as of late, and has posted a loss for the past four consecutive years.
According to Reuters, the majority of the cuts will come from selling off a chemical products division with 3,000 employes, and 2,000 more cuts will be the result of the merger between the Sony Mobile display unit with Toshiba and Hitachi to form a new firm called Japan Display. No word as of yet where the other 5,000 cuts will come from.
Japanese corporations have been facing tough times due to an abnormally strong Japanese Yen exchange rate. Televisions in particular have been having a rough time, and it is estimated between Sony, Sharp and Panasonic, the three firms lost $17 billion in the fiscal year that just ended.