Sony intends to axe 8,000 jobs, divest non-core or loss-making activities and scale back investment in its electronics business in a bid to save ¥100bn (£729m) annually.
The electronics colossus said the series of measures are a response to the “sudden and rapid changes in the global economic environment”.
As part of the corporate belt-tightening, Sony plans to shave 8,000 posts from its 160,000-strong global headcount by March 2010.
The giant said it would reduce investment in its electronics business – where it has been most affected by the acute downturn – by about 30 per cent in its next fiscal year.
Cuts will come within its semiconductor business, where it will outsource a portion of its planned increase in manufacturing of CMOS image sensors. Sony has also shelved plans to invest in LCD production expansion at its Nitra plant in Slovakia, in response to slowing demand for TVs.
Additionally, Sony said it would reduce its total number of manufacturing sites by 10 per cent by March 2010. This includes ceasing production of tape and other recording media at the Sony Dax Technology Center in France.
The vendor will also attempt to bolster its profitability by adjusting its pricing structure and withdrawing from unprofitable or non-core business.
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