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Sony Forecasts ¥110 Billion Annual Loss, Cutting 5,000 Jobs

by Joey Davidson | February 6, 2014February 6, 2014 6:00 pm EST

CES 2014-Sony-2

Sony has gone back on its initial forecast of an annual profit for the fiscal year ending in March of 2014. Instead, in a major swing in the opposite direction, the electronics giant is set of post a ¥110 (roughly $1.1) billion loss.

That big loss has forced Sony to cut down on labor. The company intends to trim itself of 5,000 jobs by the end of this year in order to save some cash.

As we reported earlier, the change in forecast will lead them to sell off the VAIO brand, as well as close its ebook division in the U.S., and focus on gaming, mobile and 4k televisions.

There’s good news in this batch of bad for the electronics and software manufacturer. The gaming division saw a nearly 64 percent boost in profits over last year, thanks largely to the big launch of the PlayStation 4. While certainly not enough to recoup the losses of the other departments below the corporation, it’s good for the PlayStation brand.

If Sony can shed all of the dead weight, like the aforementioned VAIO brand, and focus on the things that are making them money, losses like these will likely be avoidable.

The Verge

Joey Davidson

Joey Davidson leads the gaming department here on TechnoBuffalo. He's been covering games online for more than 10 years, and he's a lover of all...