Sony is set to start issuing pink slips this month following a major restructuring of their Australian operation. The move follows the appointment of DHL to handle the Company’s logistics and distribution operations.
The Company who sell into the consumer electronics, broadcast and small medium business markets are expected to lay off over 50 staff with CEO Carl Rose telling ChannelNews that the planning and evaluation process that resulted in there move to DHL was started over 12 months ago and is not a result of the economic downturn.
He said “During the past 12 months we have been reviewing our operations with a view to improving our operations and in the current environment it makes sense to constantly review costs. The move to DHL makes sense and is not a spur of the moment decision because of the economic downturn”.
Globally Sony has reported losses of over $6 billion dollars however in Australia the Company is profitable. What is not known is whether the company will merge their Computer Entertainment Division which has separate offices and separate staff in Surry Hills all for the sales of a PS2 and PS3 console, a PSP handheld and Sony games?
A Sony Computer Entertainment executive said “It would make a lot of sense but I hope they don’t as we like our autonomy and we have nice offices located close to the City”.
During an interview with ChannelNews earlier this week Rose said that the Company was set to launch several new products and that he had recently expanded his senior management team with a view to expanding sales of sony product in Australia.
He said “While the market is difficult we are constantly assessing opportunities and we will be launching several new products including new wireless Bravia TV’s, new Hi Fi and sound gear as well as high end Blu ray players. We are going to deliver high end Blu ray players as opposed to the bottom end models” he said.
On the issue of DHL Rose said “This alliance with DHL will provide Sony with greater flexibility in managing fluctuations in the demand for warehousing. As a business, it allows us to adapt to the needs of our retail partners across the country and reflect the seasonality of the consumer electronics market, variance in product sizes and weights, market conditions and import trends.”
Rose added that “DHL is an existing business partner of Sony and we’re confident that the extension of our relationship, by creating a variable cost platform for our logistics, will result in material and practical benefits to our business.”
In recent days Sony’s international group headquarters announced that the company would close 57 factories and shed 16,000 jobs in a bid to save around $US2.5 billion per year.