Sony To Make Huge Layoffs

Sony Corp will be laying off 10,000 employees, which equals about 6 percent of their work force, according to a news report by the Nikkei newspaper. The Japanese paper reports that initially in 2008 after the global financial crisis, the company had laid off 16,000 workers due to economic losses when consumers cut back on the electronic devices they were buying.

Sony is one of the leading manufacturers of electronics products for the consumer and professional markets.

Ever since 2008, Sony has been operating in the red and after four years of losses with an excepted $2.7 billion loss for the 2011 fiscal year, which is primarily being blamed on the 2011 Japanese earthquake. They have now hired a new CEO, named Kazuo Hirai to turn the company around. Hirai replaces Howard Stringer who was given the position in 2005.

According to Reuter’s, Hirai will stay in charge of Sony’s ailing TV business in a reorganization of the company’s business structure and is set to brief on the company’s business plan on Thursday.

Sony’s TV unit alone is set to lose $2.2 billion on tumbling demand and the surging yen. Sony has sold off TV factories in Spain, Slovakia and Mexico in the past few years and retains plants of its own in Japan, Brazil, China and Malaysia.

The Nikkei meanwhile says that most of the job cuts are expected to come from the firm’s chemicals and small and midsize LCD operations. The paper also reports that Sony may ask its seven executive directors that served through the last fiscal year to return their bonuses.

Sony ranked 73 on the 2011 list of Fortune Global 500.

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