Sony Details Layoffs in Japan, Europe

The company is looking to trim its global workforce by 10,000

   

More pink slips are going out at Sony (NYSE:SNE). The ailing electronics maker says it will cut 2,000 jobs by slashing the workforce at its headquarters and closing a camera lens production facility in Japan.

The newly announced layoffs are part of a strategy to reduce its global payroll by 10,000 workers by March. Staff cuts are expected to save Sony about $378.6 million annually, Reuters noted.

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An additional 2,000 workers in Europe will lose their jobs as the company shuts down its Sony Ericsson mobile phone joint venture and transfers the remaining operations back to Japan.

Shares of Sony slipped almost 2% in Friday afternoon trading in New York.

Sony has struggled in recent years against competition from mobile devices like Apple‘s (NASDAQ:AAPL) iPod, which ended its once-dominant position in the mobile music player business. It has also faced declining results in its TV business as South Korean brands like Samsung have eclipsed it with consumers.

In April, new CEO Kazuo Hirai promised to boost performance by concentrating Sony’s focus on core products including its PlayStation video-game business, cameras and mobile devices.

Last month, the company agreed to take a $645 million stake in Olympus, forming a medical equipment joint venture with the camera-maker.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/sony-details-layoffs-in-japan-europe/.

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