Sony Reduces Workforce by 8,000 Jobs Amid Global Economic Crunch

Sony plans to reduce its workers by 10 percent and cut expenditures by 30 percent. The electronics manufacturer is facing tougher times in the global economic downturn. Sony also plans to shift manufacturing to low-cost countries.

Sony Corp on Tuesday announced a workforce reduction of 8,000 jobs. The electronics company will also cut expenditures by 30 percent amid the current global economic crisis. The total number of workers plus seasonal and temporary employees is about 10 percent of its workforce reduction.

“These initiatives are in response to the sudden and rapid changes in the global economic environment,” Sony Corp said in a statement.

The electronics giant makes flat televisions, digital cameras, mobile phones, and the PlayStation 3 video game consoles. Sony has dealt with tough competition for its PS3. Microsoft Corp’s Xbox 360 beat Sony’s PS3 in sales last month. Overall, Nintendo Co Ltd’s Wii console is still the top gaming console, shredding more profits away from Sony.

The move to cut costs will save Sony over $1 billion a year.

“In addition to these measures, Sony will continue to implement measures as required to help assure both short and longer-term profitability and growth,” Sony Corp said in the statement.

Sony’s operating profit tumbled by 90 percent in the second quarter of the fiscal year. The company has been hit by a weakening global economy and intense price competition by its rivals.