Sony Announce Whopping $3.38 Billion Dollar Loss

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Sony is set to announce a whopping A$3.38 billion loss with analysts now tipping a management restructure of the Company that is led by Sir Howard Stringer. They also plan to cut their headcount by 30%, however it is not known whether Australia wil be affected.

Sony said this will be their first annual loss in 14 years as the global economic slowdown hits demand for its products. Among the worst hit divisions were consumer, also contributing was a strong yen said Sony officals. In Australia Sony is profitable.

Sony had forecast as recently as October that it would make a profit this year. The expected loss was much bigger than analysts had anticipated.

Sony’s revised consolidated results forecast also said its loss before income taxes should be US$2.2 billion and its net loss should be US$1.6 billion for the year. Sales and operating revenue are expected to fall13 percent from the previous year to $85.5 billion.

Effective immediatly Sony is set to implement major cuts in an effort to cut expenses according to TWICE in the USA.

The Company  said that will close TV design and manufacturing operations at Sony EMCS’s Ichinomiya TEC by June 2009, with Japan operations to be consolidated at Inazawa TEC.

They also said that they will standardize global hardware and software design and integrate design and R&D around the world, as well as outsource some software development. It said it is targeting a “global headcount reduction of approximately 30 percent across its TV design operations and related divisions by the end of the fiscal year ending March 31, 2010.”

 

 

Senior executive bonuses for the fiscal year ending March 31 will be “substantially reduced” and there are plans in place to “decrease fixed remuneration … in particular the three representative corporate executive officers will waive their entire bonus amount” for the fiscal year. Management-level employee bonuses and base salaries will also be reduced. Sony say that they will also introduce an early retirement program in the near future.

In December, Sony announced it would cut a total of 16,000 jobs, lower spending and close plants, which would save $1.1 billion.


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