Tuesday, December 09, 2008

Sony to Cut 16,000 jobs, Reduce Capital Spending

by Calculated Risk on 12/09/2008 08:44:00 AM

From Bloomberg: Sony Will Cut 16,000 Jobs as Recession Curbs Demand

Sony Corp. ... plans to eliminate 16,000 jobs ... The cuts include 8,000 full-time employees, or 5 percent of the company’s electronics workforce, and another 8,000 part-time and seasonal workers, Sony said.
...
“The reason for this move is the deterioration of the economy, which was much larger than we expected,” Senior Vice President Naofumi Hara said.
...
Sony said it will invest 30 percent less in its electronics business than planned ... without giving figures.

The company will also cut the number of manufacturing sites by 10 percent by the end of next fiscal year, from 57 currently.
Reduced headcount. Reduced capital spending. Two common themes.