Sony to cut 2,000 jobs and close factory in Japan

Firm continues with aggressive restructuring plans.

Axe

Sony continues to take drastic measures as part of its restructuring plans, with the firm set to axe 2,000 jobs at its headquarters and shut down a manufacturing plant in Japan.

The manufacturer has announced the jobs in Japan will be axed by the end of the fiscal 2012 year. The workforce at Sony headquarters is expected to be reduced by 20 per cent, by March 2013, although many employees are expected to benefit from early retirement schemes.

As part of its $945 million (75 billion yen) restructuring plan, Sony has also made the decision to shutdown a 56,713 square metre plant in Minokamo, which has 840 employees.

The plant currently produces lenses for digital SLRs, lens blocks and mobile devices. Sony has scheduled the plant to be closed at the end of March 2013, and operations relating to smartphones will be transferred to its site in Kisarazu, Japan.

These aggressive restructuring plans are part of Sony's mid-term strategy, as it looks to reduce costs by approximately $378 million (30 billion yen) by March 2014.

"Amidst a highly competitive business environment, Sony has been undertaking a series of measures to revitalise and grow its electronics business," the firm said in a statement.

"Sony [has] progressively implementing various structural reform measures to optimise costs, streamline its overall organisation, accelerate decision-making processes and establish firm foundations for sustainable future growth."

Sony is still on course to shed a total of 10,000 jobs by March 2013, a decision which was made after the firm posted a record $6.4 billion net loss for the financial year ending 2012. A further 3,000 to 4,000 jobs in Japan are set to cut to fulfill this target.

Featured Resources

BCDR buyer's guide for MSPs

How to choose a business continuity and disaster recovery solution

Download now

The definitive guide to IT security

Protecting your MSP and your customers

Download now

Cost of a data breach report 2020

Find out what factors help mitigate breach costs

Download now

The complete guide to changing your phone system provider

Optimise your phone system for better business results

Download now

Most Popular

Dell patches vulnerability affecting hundreds of computer models worldwide
cyber security

Dell patches vulnerability affecting hundreds of computer models worldwide

5 May 2021
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

29 Apr 2021
How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

30 Apr 2021