Sony’s announcement Tuesday to slash 8,000 jobs worldwide and shut down some plants is “not expected” to hit the company’s video game sector.
The electronic giant’s latest move is aimed at cutting costs by $1.1 billion a year amid a global downturn and stronger yen battering profits.
“Particularly within its electronics business, where Sony has been most affected by the acute downturn in the economic climate, the company has already undertaken certain short-term measures, including adjusting production, lowering inventory levels, and reducing operational expenses. Going forward, Sony intends to adjust product pricing to mitigate the impact of the appreciation of the yen, curtail or delay part of its investment plans, and downsize or withdraw from unprofitable or non-core businesses. Furthermore, Sony plans to realign domestic and overseas manufacturing sites, reallocate its workforce and reduce headcount,” the company said in a statement.
Sony’s PlayStation video games division, along with the Sony Pictures movie business, is reportedly “not expected” to be affected by the cost-cutting drive.
“Through these measures, Sony will aim to establish a corporate structure capable of delivering estimated total annual cost savings of more than 100 billion yen by the end of the fiscal year ending March 31, 2010.”
