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Sony Corp. outlines further cuts

Sony Corp. outlines further cuts

Fri 28 Feb 2014 12:30pm GMT / 7:30am EST / 4:30am PST
PublishingDevelopment

Original Tokyo HQ to be sold, 20 retail stores to be closed, 1000 layoffs for Sony Electronics

Sony's ongoing struggle to remain profitable across the full breadth saw more casualties this week, with the sale of another major office building, the closure of 20 retail stores, and the possibility of 1000 redundancies in its electronics division.

Sony Corp. revealed 5000 imminent job cuts with its financial results earlier this month, and the company has now clarified that 1000 of those will hit its Sony Electronics business, reducing the division's global headcount by a third. In addition, 20 Sony retail stores in North America will be closed.

"While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," said Sony Electronics president Mike Fasulo in a statement.

"I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."

Now, AllThingsD reports that Sony Corp. will make its third major property sale in little more than a year. According to the Nikkei, Sony will sell its former HQ (from 1990 to 2007) in Tokyo's Shinagawa district. The building is currently used for non-consumer purposes, and is said to be worth around $146 million.

Sony's previous property sales are, admittedly, on an entirely different scale. The sale of its U.S. HQ in January last year was worth $1.1 billion, while the sale of its Osaki office in Tokyo was valued at $1.2 billion.

Indeed, Sony Computer Entertainment is among the company's few bright spots at the moment. The PlayStation 4's recent launch in Japan led to an additional 320,000 sales, taking the console's global total to more than 5.6 million in little more than 3 months.

5 Comments

Yiannis Koumoutzelis
Founder & Creative Director

355 181 0.5
Interesting that there is no comment here while there are tons about the fake news on Xbox.

Does that mean the diversion worked?

P.S. Well... except my comment obviously! :P

Edited 1 times. Last edit by Yiannis Koumoutzelis on 28th February 2014 5:59pm

Posted:A month ago

#1

Jim Webb
Executive Editor/Community Director

2,209 2,048 0.9
Yiannis, I considered commenting earlier but this has become almost expected of Sony at the moment. Selling off the Xbox division is certainly more 'intriguing' as a discussable topic.

Posted:A month ago

#2

Paul Jace
Merchandiser

764 996 1.3
Popular Comment
If this continues I wonder if we'll see a "Could Sony sell off the Playstation" story.

Posted:A month ago

#3

Christopher Ingram
Editor-at-Large

35 26 0.7
While I don't like to see jobs being cut for anyone, it's good to see that Sony is continuing to take its situation seriously. As the market disruptions have continued and evolved, Sony has just continued to bleed money. It's insurance business is enough to carry a large amount of weight, but I think it's past time for the company to either shrink it's electronics division (aside from "PlayStation") or put real effort into trying to turn it around.

Posted:A month ago

#4

Alfonso Sexto
Lead Tester

713 491 0.7
@Paul
The more profitable division they have right now? I don't think they will

Posted:A month ago

#5

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