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Sony to cut 10,000 jobs amid restructuring

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© 2012 AFP

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Right before summer bonus time. Nice family company Sony!

1 ( +1 / -0 )

This was in the new york times 2 days ago as was the 6-7 billion dollar loss. Why so slow jt?

0 ( +1 / -1 )

This is just the beginning. The ball is now gaining downward momentum.

2 ( +2 / -0 )

“Now is the time for Sony to change,”

Um, nope. That should have happened years ago. I bought a Viao a few years ago and have never bought a Sony product since. They rely too much on "Built in Japan" and the loyalty of Japanese consumers. Those days are long gone.

-8 ( +3 / -11 )

Sony has to pull out from the television business and all those other other markets that are being taking over by other companies that can make the same product for less money.

Sony is a pioneer in the technology and entertainment business, and it has to continue doing so if it doesnt want to be squashed by other companies. I remember Sony being a brand that was a guarantee for quality while being expensive as a minus, but we have a global crisis that isnt over yet and we consumers know that it could get even worse. So many people arent willing to sacrifice their savings in order to get a product that is just a little bit better than other UNLESS it is unique and cutting edge.

I think Hirai is a very competent leader and has a great international background in order to get Sony back on track, but Sony has to change one way or another, and a lot of times change causes a lot of pain.

1 ( +1 / -0 )

“Now is the time for Sony to change,” **

Um, nope. That should have happened years ago. I bought a Viao a few years ago and have never bought a Sony product since. They rely too much on "Built in Japan" and the loyalty of Japanese consumers. Those days are long gone.

tmarie -- spot on. This is just rearranging the deck chairs. As you state, Sony became way too reliant on Japan from a psychological standpoint. One of the strengths for the SK companies is that their domestic market is relatively small, so they have to focus their energies on the worldwide market. Where Japanese companies get distracted by the domestic market, and think that just because something is successful there, that will translate to success overseas. Ignoring the obvious fact that Japan is a highly protected market, with very little price competition, and where consumers will pay a premium to "buy Japanese". Again, way too much inward focus and lack of worldwide perspective. Going to be Japan Inc. continued weakness since today's crop of business leaders knows no other way.

-1 ( +2 / -3 )

herefornow, it is one thing to cut domestic production, cutting more jobs making demand for their domestic products even worse. How is the economy going to get any better with all of the jobs leaving Japan? The Sony cuts will lead to other jobs being cut that leads to even more jobs being cut. One thing for sure, I NEVER buy products from Korea. Cheap shoddy sodai gomi that breaks within the first year. There is something to be said for quality domestic products. Thus you can buy a more expensive appliance that last 5 to 10 times longer than the cheap foreign built one. Thus in the long run it is cheaper. Japan really needs to keep the sodai gomi from entering the country. Look at it as a way to cut down on the waste that the cities have to process.

-1 ( +1 / -2 )

When Sony outsources their production to other countries the quality will decline. While they will make more money in the short term, they will kill the brand name. What will Sony have after they destroy the name?

-2 ( +0 / -2 )

since when korean TVs costs 1/2 and lasts 1/2 that of Sony's?

0 ( +1 / -1 )

seriously, what should've happened 20 years ago is happening today. too late, i'd say. what needs to happen TODAY is for a hedge fund to step in, take over the entire Sony, break up the company and sell the pieces to the highest bidder.

it might be a boon to the rest of the japanese electronics industry. they can all die together, or let two or three sink(sony and sharp comes to mind), and let the rest emerge stronger.

it's painful but better than facing slow death altogether.

1 ( +2 / -1 )

that korean guy, Japan has to hold the line someplace. Outsourcing all of the jobs to other countries will kill Japan. Soon Sony will be seen as a cheap ripoff of LG Electronics. My question is what will happen to Japan when most of the manufacturing jobs are gone? The rich will still have their money but the middle class will be mostly gone. Is Japan destined to become the next rust belt?

-2 ( +0 / -2 )

that korean guy, my humble apologies. I was referring to goods of Korean manufacture and not to the Korean people. The problem is once it starts the process will be irreversible. Soon there will be no more Japanese electronics or autos. With the degrading of the Japanese power grid, it will soon be not possible to run a factory in Japan. I stand with the Japanese workers and not management.

-2 ( +0 / -2 )

I NEVER buy products from Korea. Cheap shoddy sodai gomi that breaks within the first year.

I've had the opposite experience.

I bought a Sony mp3 for traveling....and the Fm tuner was limited to Japan's unique frequency band!! I then bought a Korean iRiver for a lower price, and the tuner was international, so I can use it anywhere on the planet. I've been using my IRiver happily for nearly 3 years now, and am very happy to have chucked my badly designed Sony.

I also bought a Korean-made knapsack at Tokyu Hands, which I've been using for the past 15 years. Not a single stitch is out of place.

1 ( +1 / -0 )

@YuriOtani - you wrote, "My question is what will happen to Japan when most of the manufacturing jobs are gone? The rich will still have their money but the middle class will be mostly gone. Is Japan destined to become the next rust belt?"

well. no nation is entitled to a good middle-class. the last few decades in many western world countries might have been a historical abnormality. the problem is that this "global economy thing" is killing the middle class all over the world because there are always people who are just coming off of extreme poverty and willing to work for pennies. there's nothing uniquely japanese about it. koreans have the exact same problem and i'm sure i will see chinese facing the same problem in my lifetime.

the united states did it by moving up the food chain. intel got out memory chip making business completely and google was not even in someone's head when sony ruled the world. (today, google is 12 times that of Sony in terms of market cap)

but that's little comfort because companies such as google employees very few people - they do not create strong, healthy middle class. middle class is a dying breed in the united states as well.

how japanese middle class will take this is actually of great interest to me. like a pressurized rice cooker, it needs to let go of steam and politicians are having a funny idea... germans did that 100 years ago and it didn't go so well...

0 ( +1 / -1 )

IT'S SAD !!!! SONY WAS ON THE TOP since 1980's - 2002 where did all the money go ?

Apple really destroyed the portable music player market. Totally destroyed them in their own game. Microsoft destroyed the video game market.

I give a lot of credit for designing Sony Playstation. It changed the whole video game industry !!!!!

-1 ( +0 / -1 )

What if Apple and Google start to make real progress in the TV market? Sony may end up wishing they should've had shut down the PC business and moved the best software resources from there to the television team.

0 ( +0 / -0 )

sony rules! sony will never die.

-1 ( +1 / -2 )

sony rules! but sony will die.

-3 ( +0 / -3 )

JeffLee, same is true of radios made in America. Got a used car in Okinawa once from an American. The radio did not pick up all of the stations. I have seen signs in stores warning people that the TV sets do not work in America. Anyhow I had 2 Korean vacuum cleaners in 2 years. My Japanese one is still working 5 years after and is the good National brand.

that korean guy, I would be for Japan dropping out of the WTO and placing import tariffs on imports. Japan has to protect its home industry and economy. I just do not see any other solution. The global market has created more rich people and is destroying the Japanese economy. Sony will not die but will cease to be a Japanese company. The company has to decide who's side they are on.

-4 ( +0 / -4 )

YuriOtani MP3 players are mobile IT devices, so to make something as basic as their radios incompatible with everywhere in the world except Japan is just plain stupid. Further, many users (like me) are travelers.

As for your Okinawan example, US radio frequency bands are compatible with a number of regions throughout the world. Japan's are limited to one small group of islands, called "Japan." Big, big difference.

0 ( +1 / -1 )

Back on topic please.

Funny how the different major media re-interpret essentially the same story. This version talks about boosting their television business, which is part of their DNA, but the same story in the NYT notes that:

"Promising change and announcing a string of goals, Sony’s chief executive, Kazuo Hirai, detailed on Thursday a revival plan that included a shift away from the company’s unprofitable television business and a plan to cut 10,000 jobs."

So which is it? Sony makes great TVs, but if they can't make money off of the business, they should move on to other opportunities...

-1 ( +0 / -1 )

Sad for people to lose jobs.

I think that Sony still makes some great products.

I really like my sony video camera and I'd also like to buy a Sony Nex-7...

-1 ( +0 / -1 )

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