Sony Reveals $2.9 Billion Loss, Unveils Restructuring Plans
Sir Howard StringerAccording to Reuters and GamesIndustry.biz, Sony has warned that they will post a $2.9 billion annual operating loss, and has taken the first necessary revamping steps that analysts and stockholders have been been clamoring for.
In order to combat the slower economy and the company's first operating loss in 14 years, Sony plans to "beef up" a restructuring plan outlined earlier in January, and this more than doubles a cost-cutting target for the year to March 2010. While the company plans to "keep investing aggressively in strategic fields" (like auto-use batteries, for example), they will also curb investment, close five to six plants and cut a total of 16,000 regular and contract jobs to save 100 billion yen. They will end TV production and design at one plant in Japan, and are forced to reduce the headcount by 30% in operations related to TV design worldwide. As of right now, turning around the LCD TV operations, which is only losing money, is high on Sir Howard Stringer's priority list. Said Stringer:
"We simply have no alternative but to dramatically change the fundamental ways we view our business as well as the way we create, manufacture and distribute our products."
Sony expects these restructuring changes will yield a total of 170 billion yen through March 2010, although some analysts are pressing for more changes. As for the games division, Sony will post an increased loss of $337 million, although there's no report on the exact cause of the loss. Most are simply attributing it to slower-than-anticipated hardware and software sales, which Stringer has already said must be maintained and boosted. Evidently, he continues to battle the old guard at Sony, but for now, the restructuring plans are somewhat in place and will hit TV production hardest.
1/22/2009 Ben Dutka
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Comments (50 posts)
King James
Thursday, January 22, 2009 @ 11:56:25 AM
-Desktops w/ coolant systems (instead of fans).
-They were making UMPCs before they were cool.
-Their notebook PCs has the best displays money can buy.
-And u know these pcs got that Blu-Ray!
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somethingrandom
Thursday, January 22, 2009 @ 8:52:20 PM
Sony stopped making VAIO desktops some time ago. However, they do still sell laptops.
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PS3_Wizard
Wednesday, January 28, 2009 @ 2:24:36 PM
So I take it you have to know EVERY brand of EVERY product in order to be cool these days? King james, Go screw yourself punk...
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kidgrid
Thursday, January 22, 2009 @ 11:43:43 AM
Reply
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coverton341
Thursday, January 22, 2009 @ 1:04:55 PM
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King James
Thursday, January 22, 2009 @ 1:22:20 PM
--I'm not knocking ur choice Coverton, btw.
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The Cheat
Thursday, January 22, 2009 @ 3:11:22 PM
even the sony top of the line is inferior to similarly priced models from other companies like samsung.
2 up, 1 down
coverton341
Thursday, January 22, 2009 @ 5:26:10 PM
I mean, how dare you question what I buy? Having an opinion of your own and such. It's just unforgivable.
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King James
Thursday, January 22, 2009 @ 5:49:05 PM
:(
Sidenote: And I don't know what this guy, "the cheat", is talking about. High-end Sonys pwn high-end Samsungs. And that's a fact. The roles get switched on the lower end LCDs though.
Last edited by King James on 1/22/2009 5:51:45 PM
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Wage SLAVES
Friday, January 23, 2009 @ 1:13:24 AM
Plasmas are gross. They make me feel sick if Im standing right in front of it. DLP those lights burn out FAST. My friend replace his 3x in 2 years! At $200 buck a light F-that!
It seems OLED is gonna soon OWN all.
Last edited by Wage SLAVES on 1/23/2009 1:14:25 AM
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LegendaryWolfeh
Thursday, January 22, 2009 @ 12:25:31 PM
Reply
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coverton341
Thursday, January 22, 2009 @ 1:02:56 PM
1 up, 1 down
King James
Thursday, January 22, 2009 @ 1:26:03 PM
He's like, "No!!! My 3rd mansion!!!"
Last edited by King James on 1/22/2009 1:26:14 PM
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ec0li
Thursday, January 22, 2009 @ 2:37:04 PM
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coverton341
Thursday, January 22, 2009 @ 4:58:06 PM
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Wage SLAVES
Friday, January 23, 2009 @ 1:16:43 AM
"And I can't Breef!" Lol (assuming you were talking about George Lopez)
Last edited by Wage SLAVES on 1/23/2009 1:17:57 AM
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ec0li
Friday, January 23, 2009 @ 1:47:45 AM
I gave you a thumbs up even though the picture itself is labeled "Sir Howard Stringer". o.O
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Scarecrow
Thursday, January 22, 2009 @ 1:04:13 PM
Reply
They can make this money back overa time.
Economics are that way, balance of negatives and pluses.
Overtime through softward the losses will be erased, and the ps3 starts making huge profits.
Last edited by Scarecrow on 1/22/2009 1:05:38 PM
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King James
Thursday, January 22, 2009 @ 1:29:21 PM
"He [Bush] knows nothing about honor, or the way of the sword."
LOL...Venture Bros. is so comical.
Last edited by King James on 1/22/2009 1:29:59 PM
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coverton341
Thursday, January 22, 2009 @ 1:44:40 PM
"Why do you make me hit you"
Aqua Teen Hunger Force, Master Shake
YEAH BABY!!!!!!!!
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faraga
Thursday, January 22, 2009 @ 1:13:28 PM
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and to PS3-Wizard, i've got an old vaio, wich is a great laptop, for its age, not on it now, got a slightly better dell inspiron, got that of my sister who bought an apple notebook
but my vaio once died, (probably due lying on the floor of a car when driving over a speedbumb), and went to a repair dude with it, but he said he couldn't repair it cuz the architecture of the device. so i gave up,
when about 2 months later i got my current laptop and i though let's switch harddrives so i won't lose any stuff, and got my vaio, tried to put it on for one last time and who knows,
IT WORKED!!!
now i gave it the nickname zombiecomputer, which probably means the same in english :-)
Japanese things are just strange...
Last edited by faraga on 1/22/2009 1:14:46 PM
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Robochic
Thursday, January 22, 2009 @ 1:19:23 PM
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damn that is so true LOL!!
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Geobaldi
Thursday, January 22, 2009 @ 1:20:15 PM
Reply
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coverton341
Thursday, January 22, 2009 @ 1:46:18 PM
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Tim Speed24
Thursday, January 22, 2009 @ 1:24:18 PM
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city96
Thursday, January 22, 2009 @ 1:35:19 PM
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faraga
Thursday, January 22, 2009 @ 1:52:25 PM
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if everyone's losing money, then where is all that money going to???
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somethingrandom
Thursday, January 22, 2009 @ 9:02:21 PM
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faraga
Friday, January 23, 2009 @ 11:12:41 AM
Last edited by faraga on 1/23/2009 11:13:12 AM
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Phoelix
Thursday, January 22, 2009 @ 2:36:51 PM
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Probably karma for them since I absolutely hate marketing strategies that involve some form of misleading or misinformation to sell a product.
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dirdiggler
Thursday, January 22, 2009 @ 3:37:41 PM
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aaronisbla
Thursday, January 22, 2009 @ 4:36:34 PM
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0 up, 1 down
coverton341
Thursday, January 22, 2009 @ 5:00:35 PM
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DAMN!
So timster as you can see yeah they are going to let go of 5000 people over the next 18 months but they cut gave the axe to 1400 today
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Kingharris
Thursday, January 22, 2009 @ 5:33:59 PM
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MetalHead09
Thursday, January 22, 2009 @ 6:45:01 PM
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Qubex
Thursday, January 22, 2009 @ 8:05:07 PM
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Q!
"i aM hOMe"
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ec0li
Thursday, January 22, 2009 @ 8:15:43 PM
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LCF
Thursday, January 22, 2009 @ 8:17:28 PM
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But to the topic.This is the worst economic crisis we have ever had in the history of the world.The whole world is in the pit fall. It had to happen right when Sony is trying to push the world into the HD era no less.
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Aftab
Thursday, January 22, 2009 @ 8:48:50 PM
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superjew
Thursday, January 22, 2009 @ 11:56:06 PM
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bamf
Saturday, January 24, 2009 @ 9:19:24 AM
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In the UK if you look about you'll find that the prices of food is cheaper, prices of cars are 60% less than 2 years ago according to a report, generally prices are falling everywhere yet we still all earn the same amount of money (unless you've been made redundant).
My monthly expenditure is no more than it was 2 yrs ago, in the last year I've had 2 pay increases, only slight but it all adds up. Oh and our tax is down to 15% from 17.5% so we all earn more than we did last year. And products are cheaper because of this.
Where I work 2008 was the best year ever for us.
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King James
Reply
Thursday, January 22, 2009 @ 11:34:08 AM
Is samsung killing it like that?! I guess that does make sense. The lower end samsungs and panasonics are way better than the lower end Sony's. Its in their DNA.
Maybe they can try to focus on their PCs. Sony PC's are great but they are also expensive. If they can develop a lower end version to attack the lower income people, they would dominate the market just off of the included software they have.