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Sony to cut 10,000 jobs, will focus on games

To stem losses, newly appointed CEO Kaz Hirai announced a new plan that will realign Sony's focus. However, the new strategy can't be implemented without axing 10,000 jobs, about 6 percent of the company's global workforce.

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Sony is one of the largest companies in the world, with its hand in a number of businesses, from movie production, music licensing, electronics manufacturing, and of course, game development. Hit hard by the economic downturn, a strengthening yen, and other factors, the company has announced that it will post its "worst loss ever," continuing four years of unprofitability.

To stem losses and turn the company around, newly appointed CEO Kaz Hirai announced a new plan that will realign Sony's focus. However, the new strategy can't be implemented without axing 10,000 jobs, about 6 percent of the company's global workforce.

"Sony will change. I've fully dedicated myself to changing Sony," Hirai said, according to The Wall Street Journal.

Part of Hirai's five-pronged strategy for turning the company around is "strengthening core businesses." The new Sony will have three core businesses, which will eventually represent "70% of total sales and 85% of operating income for the entire electronics business." The three pillars are: digital imaging, games, and mobile.

Downloadable games will be an increased focus for the company, as will the PlayStation Suite--a development platform that enables cross-platform games across PS Vita and Android devices. Sony will target game business sales of one trillion yen ($12.3 billion) and operating income margin of 8% by fiscal year 2014. The company's mobile division will also take further advantage of the Sony Entertainment Network--which powers the PlayStation Store and other PSN services.

Andrew Yoon was previously a games journalist creating content at Shacknews.

From The Chatty
  • reply
    April 12, 2012 9:30 AM

    Andrew Yoon posted a new article, Sony to cut 10,000 jobs, will focus on games.

    To stem losses, newly appointed CEO Kaz Hirai announced a new plan that will realign Sony's focus. However, the new strategy can't be implemented without axing 10,000 jobs, about 6 percent of the company's global workforce.

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      April 12, 2012 9:34 AM

      And here I thought sony's focus on games is what caused the 10,000 job cut.

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        April 12, 2012 10:12 AM

        I believe TV production is the cause of a lot of it.

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          April 12, 2012 11:03 AM

          Turns out people don't want to buy brand new several thousand dollar TVs every couple of years.

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          April 12, 2012 12:24 PM

          yeah, supposedly Sony's game division is actually one of their better performing divisions.

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      April 12, 2012 9:37 AM

      maybe they'll stop making crap like this
      http://www.youtube.com/watch?v=HTxdKi77G20

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        April 12, 2012 9:49 AM

        It's a fun idea but really not worth $230.
        What else will stop the bleeding? Not coming up with proprietary flash storage that no one adopts.

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      April 12, 2012 9:45 AM

      Shouldn't music and movies be a pillar? Those are two major parts of the company not to focus on. I also thought their mobile phones were not doing so hot or is Sony Ericson a completely different thing?

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        April 12, 2012 9:49 AM

        Sony Ericsson WAS a 50/50 join venture between Sony and Ericsson, however Sony just completed their acquisition of Ericsson 50% share, I received this in my email today:

        "We're writing to tell you that Sony Ericsson has become Sony Mobile Communications, and is now fully owned by Sony and integrated under the Sony Brand."

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        April 12, 2012 10:57 AM

        The Sony Entertainment Network basically covers Music/Video Unlimited services along with PSN stuff.

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          April 12, 2012 12:39 PM

          MH Knights means the production studios, not the streaming services

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      April 12, 2012 9:52 AM

      didn't the previous ceo try to restructure the company and the board/rest of the company fought him on every single thing?

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      April 12, 2012 10:50 AM

      They built the shittiest line of HDTV's out there.... because they have so many resources all over the place for failed products and ideas... Samsung blew them away in the HDTV market

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        April 12, 2012 11:41 AM

        [deleted]

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          April 12, 2012 11:44 AM

          Gross exaggerations? In my Shacknews?

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        April 12, 2012 11:46 AM

        They built good televisions they just happened to be massively overpriced.

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          April 12, 2012 12:00 PM

          ^^^ This. Cost is the main reason I went with Samsung instead.

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            April 12, 2012 12:04 PM

            cost? what cost? do you mean people don't like buying products designed to break within a few months after the manufacture's warranty expires and don't like shelling out the outrageous fees they charge to repair it?

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              April 12, 2012 12:25 PM

              ^^^It has happened with nearly every Sony product I have owned. Fuck them.

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                April 12, 2012 12:45 PM

                me too, every sony product I've ever purchased has failed. I don't buy sony any more obviously.


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            April 12, 2012 12:24 PM

            It's what gave Vizio such a big opening.

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          April 12, 2012 12:30 PM

          [deleted]

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      April 12, 2012 11:05 AM

      This could be really good for the next console generation. A Sony actually focused on games again rather than trying to get a media center in your home could be a very good thing if they actually follow through.

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      April 12, 2012 11:52 AM

      [deleted]

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        April 12, 2012 12:05 PM

        they didn't even give the british guy a chance!

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          April 12, 2012 12:43 PM

          [deleted]

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            April 12, 2012 12:49 PM

            iirc, the directors, managers, and board resisted any significant changes he tried to make to turn the company around. i wouldn't be surprised if the new ceo doesn't get anything done either.

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              April 12, 2012 2:45 PM

              Except Kaz is Japanese so they will all of a sudden think the changes are great!

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                April 12, 2012 3:52 PM

                that's assuming kaz has real ideas on how to turn the company around instead of doing more of the same while laying off workers.

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      April 12, 2012 1:24 PM

      10,000 people with families or 100 assholes in management... hmmm what would I pick

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