Troubled electronics giant Sony is to cut jobs and products in effort to return to profitability.
Sony announced on Thursday that it plans to lay off 10,000 employees, about 6 per cent of the company's global workforce, in an effort to return the troubled company to profitability.
Kazuo Hirai, Sony's new CEO at an event in Berlin in 2011.
(Credit: Stephen Shankland/CNET)
The cuts, as previously reported, are part of the electronics and entertainment giant's "One Sony" initiative, which focuses on the company's core strengths: digital imaging, gaming and mobile. Kazuo Hirai, who took over as Sony's chief executive on 1 April, said that the restructuring is expected to cost the company 75 billion yen (about $926 million) in fiscal 2012, according to The Next Web.
To boost Sony's ailing TV business, Hirai said that the company will reduce the number of products offered by 40 per cent, focusing on the development of OLED and Crystal LED, The Verge reported.
The cuts come as Sony grapples with declining earnings. The company announced earlier this week that it had revised its earnings forecast for the fiscal year ended 31 March; instead of the previously projected loss of 220 billion yen (approximately AU$2.6 billion), the company now expects to post a loss of 520 billion yen (AU$6.15 billion).