Sony President and CEO, Kazuro Hirai, has this week confirmed that the company will cut 10,000 jobs globally as it seeks to reorganise the entire company.
With an aim of completing five core and immediate goals, to strengthen digital imaging, mobile and gaming, revitalise its TV business, fuel innovation, create new businesses and realign its business portfolio in order to optimise its resources, Sony will lay off 10,000 people as well as undergo a massive management restructuring.
Mr. Hirai, who replaced Howard Stringer as president and CEO of Sony in February of this year, expects that the costs of these layoffs will cost the company around $926 but, on the other side, the company expects to see profits of around $74 billion generated in its electronics business by 2014 with an operating income margin of 5%.
Speaking of the decision, Mr. Hirai said, “We cannot avoid facing painful decisions, but if we are scared of pains we cannot change Sony. My biggest responsibility is to revive the electronics business and shift it into a path for growth.”
A Tokyo-based analyst commented on the decision to restructure, saying, “Sony really needs to start boosting sales by tapping surging demand for smartphones and tablet computers or show another convincing plan to boost its competitiveness.”
This will be the fifth restructuring of the company since 1999 with a previous 66,500 jobs previously being lost. Sony currently employs 168,200 people across all sectors of its business globally.