- Title: VARIOUS: Sony to cut eight thousand jobs
- Date: 9th December 2008
- Summary: SONY CHIEF EXECUTIVE HOWARD STRINGER SPEAKING TO AUDIENCE AT IFA
- Embargoed: 24th December 2008 12:00
- Topics: Economic News,Domestic Politics
- Reuters ID: LVAD3B0SR1Y4JB17CP95RH17YG3L
- Story Text: Japan's Sony Corp said on Tuesday (December 9) it will cut about 4 percent of its workforce, curb investment and pull out of businesses to save
1 billion U.S. dollars a year, as the financial crisis ravages demand for its electronics products.
The 8,000 job cuts are the biggest announced by an Asian firm so far in the crisis and underscore the challenges facing Sony, which has fallen behind Apple Inc's iPod in portable music and is losing money on flat TVs.
But analysts warned the measures may not be bold enough to streamline a sprawling empire that ranges from semiconductors to movies and insurance. The cuts are also risky because they mean Sony will be investing less in future growth.
Shares in Sony, which have fallen nearly 70 percent this year, rose 3 percent to 15.79 euros in Frankfurt after the announcement.
Sony flagged the need for restructuring in October when it more than halved its annual profit forecast, blaming slowing demand for its Bravia liquid crystal display TVs and Cyber-shot digital cameras and a firmer yen.
The restructuring is a setback for Chief Executive Howard Stringer, who had implemented a major restructuring after taking the helm in 2005 and until recently seemed to have put the company on a recovery track.
It also underlines the grim outlook for Sony and its rivals during the year-end shopping season as the financial crisis grows into a broad recession that has already engulfed the United States, parts of Europe and Japan.
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