Sony, the Japanese media giant, is on the urge to reduce its workforce by cutting 10,000 jobs, worldwide, till the end of 2014 after facing a continuous loss for the past 4 straight years. Over the next 2 fiscal years, the company is planning to cut down about 6% of the company's global workforce which will be the result from selling or spinning off of the businesses that are not giving any profit to the company and are the major cause of the company's fall. The company hasn't done any official announcement till yet but these cuts are the part of restructuring plan by the new CEO of Sony and are expected to be announced at the forthcoming corporate strategy meeting. The company till now is completey denying the news but rumors are in the airs as the company is facing loss since eight years in its television division.
This restructuring plan of Sony is the second major decision in 4 years because during the global financial crisis in the year 2008, the company shut down many of its factories resulting in 16,000 jobs cut. In fact, the top level executives of the company will also be asked to return their bonuses for the fiscal year that ended in March 2012. Sony has already announced to dispose off two of its businesses which would cut as many as 5,000 jobs in one shot. Sony has done a deal with The Development Bank of Japan to sell out its chemical products business to the bank and Sony has also split down its LCD operation business with Toshiba and Hitachi. Earlier it was expected that Sony would announce a loss of $2.7 billion for the last fiscal year but to a great shock, the loss that the company had suffered was near about two and a half times of the estimated loss, that is, $6.4 billion.
Sony's division unit was the main weakest spot which has been hurt by a strong yen and competitive pressures pushing down the price of LCD Tvs in most of the market. More over that the company was unable to cater the changing needs of the customers with the changing technology. Sony got a tough competition from Apple and Samsung, that were able to boost up their sales of electronic items and covered almost all the segments in the market, thus gaining an enormous profit in the last fiscal year and leaving Sony far behind.