Record annual loss of $6.4bn for Sony, reducing workforce by 6%
Posted: 10.04.2012 13:03 by Simon Priest Comments: 0
Electronics giant Sony's balance sheet is still running red marking its 4th straight year of losses. Its most staggering deficit to date, $6.4bn, comes after writing off deferred tax credits.

Sony plans to cut 10,000 jobs which equates to about 6% of its global workforce. They forecast they'll be okay once again by March-end 2013 with $2.2bn operating profit.

Falling consumer demand for its televisions, as well as the continued rise of rival gadget firms Apple Inc and Samsung, have seriously cut into Sony's bottom line.

Accountants for the corporate giant forecast they'll secure 180 billion yen in operating profit by the end of this fiscal year, which closes March 31st, 2013. New Sony CEO Kazuo Hirai declares he's ready to take "painful steps" to bring the company back into profit. He's targeting their TV business and pledges it'll be in great shape in 2 years.

"There have been several reasons for our poor results," said CFO Masaru Kato, noting a strong Yen and low demand. Are top execs going to lose their posts? "We are aiming for a rebound and for this we have made management changes." Can Sony turn around their fortunes? Kazuo Hirai was praised for 'saving' the PlayStation business.
Source: Reuters