Sony, the Japanese consumer electronics company, is planning to cut 8,000 jobs across its global workforce and close down 10% of its manufacturing sites. It is aiming to make cost savings of about •100bn (£730m) by the end of the next financial year.
The company, which is led by Welsh chief executive Howard Stringer (pictured), says the job cuts are expected to be made by 2010, but has not confirmed which countries will be effected. It represents 5% of its 160,000 workforce around the world.
It expects to cut its investment across its business, including the development liquid crystal screens, by 30% and either downsize or withdraw altogether from unprofitable areas. It will shut down about 10% of its 57 production facilities.
In a statement, Sony says: “These initiatives are in response to the sudden and rapid changes in the global economic environment. In addition to these measures, Sony will continue to implement measures as required to help assure both short and longer-term profitability and growth.”
The move comes after the Japanese Cabinet Office announced that the economy had decline at an annual rate of 1.8% between July and September. This is higher than previous forecasts of a 0.4% decrease.