TODAY'S TOP STORIES
FONT-SIZE Plus   Neg
Share SHARE

Sony To Cut 2000 Jobs, Close Minokamo Site

Sony To Cut 2000 Jobs, Close Minokamo Site
RELATED NEWS
Trade SNE now with 

Japanese consumer electronics maker Sony Corp. (SNE: Quote, SON.L) on Friday announced additional measures to speed up structural reforms of its headquarters and electronics business operations in Japan, which include a plant closure and elimination of around 2000 jobs.

The latest announcement follows a recent decision to reduce headcount across Sony Group, primarily in electronics, by around 10,000 in the fiscal year ending March 31, 2013, which is called fiscal year 2012, including about 3,000 to 4,000 in Japan.

The PlayStation maker, which is going through a tough phase, intends to shift manufacturing of interchangeable lenses and lens blocks from Minokamo site to Sony EMCS Corp.'s Kohda site. This is aimed at improving the efficiency of manufacturing operations relating to the digital imaging business.

Since the company is focusing on smartphones, the mobile phone operations being done in Minokamo will be partly discontinued and partially transferred to Sony EMCS Corp.'s Kisarazu site.

These actions will lead to the closure of the Minokamo site at the end of March 2013. The plant has 840 employees under direct employment.

Further, early retirement programs will be implemented at Sony Corp, Sony EMCS Corp. and other major consolidated electronics subsidiaries in Japan.

These measures are expected to result in headcount reduction of 2,000 employees by the end of fiscal year 2012. Around half of the reductions is expected to be in support functions, including the company's headquarters.

A headcount reduction of about 20 percent is expected in the headquarters by the end of the current fiscal year through an early retirement program and resource shifts.

Staff strength within the Home Entertainment and Sound Business Group, including the TV business group, is expected to be reduced by 20 percent by the end of October, due to the transfer of employees outside the company, and a resource shift in personnel to other operations within the Sony Group.

It was on April 12 that Sony said it plans to cut 10,000 jobs in fiscal year 2012, as part of a turnaround plan. The Japanese electronics firm also listed a few initiatives at that time to strengthen its core electronics business.

Sony said today that the latest job cuts are not expected to materially impact its fiscal 2012 consolidated results forecast, as these measures are included in the previously announced 10,000 headcount reduction and 75 billion yen in restructuring charges for the year.

The restructuring measures implemented in fiscal year 2012, including those announced today, are expected to translate to annual reduction in fixed costs of 30 billion yen from fiscal year ending March 31, 2014 onwards.

Sony settled on Thursday in Tokyo at 983 yen.

Register
To receive FREE breaking news email alerts for Sony Corp and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.