Recession takes toll on Sony
Japanese consumer electronics giant Sony announced Tuesday that it will lay off 8,000 full-time employees by March 2009 and slash spending in an attempt to reposition itself for a prolonged global recession. It also plans to reduce seasonal and temporary workers.
The cuts will leave Sony with 160,000 employees worldwide.
The Tokyo-based company intends to shutter 10% of its 57 plants and delay an expected expansion of a plant in Eastern Europe where flat-panel televisions are assembled.
Sony will reduce investment in the consumer electronics business in the fiscal year ending 31 March 2010, by about 30% compared with its mid-term plan.
All told, these measures should save the company about 100 million yen or US$1.1 billion by the end of the next fiscal year.
Sony's stock was up 2.54% to $20.55 per share in mid-day trading on the New York Stock Exchange.