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Sony Cuts 5,000 Jobs, Exits PC Business and Tips $1 bn Loss
[An Nahar] Sony on Thursday warned it would book a $1.08 billion annual loss and cut 5,000 jobs while exiting the stagnant PC market this year as the once-mighty electronics giant struggles to reinvent itself in the digital age.The shock news comes a week after Moody's downgraded the firm's credit rating to junk, saying the maker of Bravia televisions and the PlayStation games console had more work to do in repairing its battered balance sheet. It also comes as Japan's embattled electronics sector faces serious challenges from foreign rivals such as U.S. giant Apple and South Korea's Samsung. Sony said Thursday the job cuts would save about $1.0 billion a year starting from early 2015 as it announced the sale of its Vaio-brand PC division to a Japanese investment fund. It did not disclose financial details of the deal with Japan Industrial Partners (JIP), but local media this week reported that the sale was worth between 40 billion yen ($400 million) and 50 billion yen. Citing "drastic changes" in the global personal computer market, Sony said it had decided to concentrate on "its mobile product lineup on smartphones and tablets and to transfer its PC business to a new company established by JIP that will enable (its) continuation". It would "cease planning, design and development of PC products", Sony added. The job losses -- about 1,500 in Japan and 3,500 overseas -- were tied to its ailing television and PC businesses, it said. Posted by: Fred 2014-02-07 |
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