Sony’s in trouble – and 10 000 of its employees will soon be out of jobs


For the last four years, Sony’s failed to make a profit. Sony’s new CEO Kazuo Hirai – formerly the company’s PlayStation Boss – wants to change that, and in order to make the company profitable again will be heavily restructuring the Japanese mega-corporation.

Good news for Sony, but terrible news for its employees – 10 000 of which are expected to be handed pink slips within the next year.

This is according to a sobering report by the Associated Press which cites numerous Japanese reports. Sony’s woes are largely down to their shrinking TV business and their betting the farm on 3D – which while growing, has yet to take of as they’d hoped. Sony’s once mighty “Bravia” name has also fallen out of favour with the public. As part of the new restructuring, Sony will merge its LCD panel business – which it used to operate with the now much larger Samsung – with Toshiba and Hitachi. It’ll also be selling off its chemical business.

The company’s blamed "deterioration in market conditions in developed countries" and "unfavourable foreign exchange" along with the floods in Thailand – home of many of its factories – for its financial woes.

It’s hard to imagine that Sony – one of the largest names in electronics – could be in such dire financial straits, but it’s unfortunately quite true. In its latest financial report Sony has estimated it’ll make a staggering loss of 520 Billion Yen – or  $6.4 billion -  this year – nearly double the expected loss.

It’s for this reason I don’t expect Sony to unexpectedly release a new console any time soon; they’ve just released the Vita and the financial knock of another console launch – which are typically loss leaders – could just bring the company to its knees.

Tags: , , ,

Author:Geoffrey Tim

I'm old, grumpy and more than just a little cynical. One day, I found myself in possession of a NES, and a copy of Super Mario Bros 3. It was that game that made me realise that games were more than just toys to idly while away time - they were capable of being masterpieces. I'm here now, looking for more of those masterpieces.

Must Read

Razer Kraken headset review: Release the sounds

Razer's budget version of a pro-gaming headset is exactly that - pro ...

Logitech Powershell Review – Yes but why?

We review the add on controller for mobile gaming, the Logitech Powershell

Samsung Galaxy S5 Review

The Samsung Galaxy S5 gets put through the ringer as we review ...

Crimsonland review – Retro shooting

Crimsonland is coming to PS4 and its gore will remind you of ...

Tomodachi Life Review – An Aleutian of life

Tomodachi Life is by far the weirdest game that I’ve ever been ...

Samsung Galaxy Tab 3 review: Barely scratching the surface

The Samsung Galaxy Tab 3 offers 10.1" of portable experiences, but is ...