Well, following its rather dismal forecast back in April, Sony’s latest financial results are hardly surprising. But they’re still bad news for the Japanese company, which was once at the helm of the consumer electronics market thanks to devices like the Walkman and the PlayStation.
Today it has reported its fourth straight year in the red, with a record annual loss of ¥457 billion (approx. $5.7 billion). That’s the worst fiscal year in the company’s 66-year history. Part of that was due to a gloomy fourth quarter, which saw the company lose ¥255 billion (approx. $3.2 billion) between January and March 2012.
Some of that damage was undoubtedly caused by Sony’s struggle to compete with companies like Apple and Samsung when it comes to devices like smartphones, tablets, and televisions. But some of the blame can be placed on the damage caused to its factories and suppliers by last year’s disasters in Japan, and the floods that hit Thailand. The company also condemns “unfavorable” foreign exchange rates.
However, Sony is confident it can be saved by its new president and CEO, Kazuo Hirai, who took over the company earlier this year. Hirai, who played a large part in making Sony’s PlayStation so successful, has announced that he is prepared to take “painful steps” to get the company out of the red. One of those was shedding 10,000 employees (around 6% of its workforce) in an effort to save cash.
Do you think Hirai can help Sony return to its glory days?
[via The Verge]