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Sony to cut 10,000 jobs in Japan

Tokyo, Apr 9 () : CEO Kazuo Hirai of Sony is to sack 10,000 employees in Japan in a move to pull the company out of the red. Posting losses for past four years, the new CEO is given the hard job of pulling it out from the present state.

220 billion yen ($2.7 billion) is the net loss of Sony in the financial year ending March. Dealing with consumer and electronics as well as entertainment,the chemicals division and the mini and medium level LCD units are the areas where losses continue to mount and jobs would be cut from these areas.

Howard Stringer on April 1 stepped down and the new CEO took over. This weekend Hirai is expected to make public his plan of restructuring and putting the company back on the rails. Hirai is expected to keep direct charge of the TV manufacturing division in order to take measures to revive the business.

“Stringer who is now the Chairman and seven other excutive directors have been asked to surrender their bonuses as there were no profits,” said Japanese daily Nikkei.

Share markets received the news with a 0.9 % rise which is good news since Sony shares are falling every day.

Masaru Ibuka and Akio Morita joined hands in 1946 to start Sony. It was first known as Tokyo Tsushin Kenkyujo  (Totsuko), or Tokyo Telecommunications Research Institute which later spread over globally as Sony.

November 1994 saw Sony enter Indian markets with their products and went on to establish the TV network. Masaru Tamagawa is the MD of Sony India which is the 100% subsidiary of Sony Japan. Its share capital is Rs. 550 million and has around 700 staff with branches in key towns.

Sony Mobile which acquired Ericsson is all set to launch its smartphone Xperia S handset in India on April 10. It was on display at Consumer Electronics Fair and is priced at Rs 32,000 with free accessories worth Rs 4000.